THE LIBRARY OF
YORK
UNIVERSITY
"The Birth of Power"
HIS colorful mural from the masterly
A brush of Willy Pogany greets the thou-
sands who annually visit the- Schoellkdpf
Station of The Niagara Falls Power
Company.
This allegorical painting tells in vivid
and powerful tone, but with eerie light-
ness, the romantic birth story of human-
ity's modern servant — electrical power.
Torrents of energy tumble into the
eddying pool of human waves from which
emerge the two poles imparting the spark
of life to the giant genie — Power.
Digitized by the Internet Archive
in 2014
https://archive.org/details/niagarapowerhistOOadam
NIAGARA POWER
S5
<
c
w
S
<;
w
x
O
c
re
<
W
>
7, .2
O a.
a c
= «.
hi a
eg "5
c >-
&! C5
^3 C
"5
c
w
2;
NIAGARA POWER
HISTORY OF
THE NIAGARA FALLS POWER COMPANY
1886-1918
EVOLUTION OF ITS
CENTRAL POWER STATION and ALTERNATING CURRENT SYSTEM
[in two volumes]
VOLUME I
HISTORY AND POWER PROJECTS
By
EDWARD DEAN ADAMS
M.A., M.S., LL.D.
JOHN FRITZ MEDALIST
MCMXXVI
PRIVATELY PRINTED FOR
THE NIAGARA FALLS POWER COMPANY
MCMXVII1
NIAGARA FALLS, N. Y.
ON THE FIFTIETH ANNIVERSARY
1927
OK ITS FOUNDATION
TRIBUTE OF APPRECIATION
For the co-operation of members of the Schoellkopf
organization in the preparation of this record, as-
surances of appreciation are extended.
Acknowledgments are also made for the assist-
ance received from associates in this adventure, who
contributed in so many ways to make the record
accurate as well as complete, thirty years after
achievements had crowned our undertaking.
The Author
COPYRIGHTED, 1927, BY EDWARD DEAN ADAMS, NEW YORK
PRINTED IN V. S. A.
BY BARTI.ETT ORIt PRESS, NEW YORK
To
COLEMAN SELLERS
1827-1907
CHIEF ENGINEER
THE NIAGARA FALLS POWER COMPANY
THIS RECORD IS DEDICATED
BY THE AUTHOR
AS A TRIBUTE OF
HONOR AND AFFECTION
Paul A. Schoellkopf
President, Buffalo, Niagara and Eastern Power Corporation
President, The Niagara Falls Power Company
A WORD OF INTRODUCTION
FEW developments have exerted so marked an influence in industry and
commerce, and have made so great an impression in the art of generating
and transmitting electricity, as those of The Niagara Falls Power Company.
The history of that company is related in these volumes by one who for
thirty-eight years has given freely of his ability, time and influence towards the
consummation of the enterprise. And how greatly has it expanded and what
vast proportions has it attained!
When started thirty years ago, The Niagara Falls Power Company was
the greatest hydro-electric enterprise in the world, with water turbines larger
than any at that time in existence. Today, having kept step with the marvelous
development of the art, it still retains that distinction as its latest water
turbines are not only the largest but also the most efficient now in use.
The author of these volumes was for twenty years the president of The
Cataract Construction Company which erected the original power stations at
Niagara Falls and gave financial stability to the then Niagara Falls Power
Company. He was intimately associated with every step in the development
and personally sought out and interested the eminent international engineers
whose counsel and advice were so helpful in the pioneer work. Well might he
say with Virgil, "All of these things I saw, and a great part of them, I was."
It is pleasant to note in this connection that for his work at Niagara Falls,
Mr. Adams was awarded the John Fritz Medal, the highest honor at the
bestowal of the four senior national engineering societies of this country.
His was the directive force which brought the great project at Niagara
Falls into fruition. No other man is more completely informed on its gradual
and at times discouraging evolution, and it was in accordance with the ex-
pressed wish of his fellow directors that he undertook and completed the
record contained in these pages.
For this, as for a vast amount of other voluntary services, Mr. Adams
deserves the thanks of his fellow directors as well as of the electrical industry
which has always manifested a lively interest in The Niagara Falls Power
Company. As the president of that company I am conscious that I voice the
vii
NIAGARA POWER
sentiment of my fellow directors and stockholders in this expression of grate-
ful appreciation for all that Mr. Edward Dean Adams has done. He brought
to his work broad culture and vast efforts. As a man his acquaintance and
friendship are greatly treasured and highly prized.
The Niagara Falls Power Company
President
"Books must follow sciences
and not sciences books"
Sir Francis Bacon, 1625
viii
THE GREAT STEP IN THE TRANSITION
FROM MECHANICAL POWER IN INDUSTRY
TO ELECTRICAL POWER
EVERYWHERE
THIS history of The Niagara Falls Power Company is the story of the
development of the pioneer hydro-electric system, forerunner of modern
utility power service. It records the great step in the transition from the
century of mechanical power to the century of electrical power.
The event of the nineteenth century was the great adventure of the world
in power, in manufactured power, from coal by the engine of Watt, or from
the flow of falling rivers; mechanical power to replace muscular power; to
pull trains and to drive machinery; to do miracles in industry by vast multi-
plication of the power the worker controls and thus to create a new epoch in
human history. In the wake of power came industrial revolution, economic
revolution, social revolution, and a readjustment of the philosophy and prac-
tises of life as the easier way of doing more created a new freedom from the
immemorial bondage of toil.
Then came a great event in power production. It was at Niagara. Niagara
— what other word conveys the same awe and sense of power! It was pro-
posed to conserve the vast and wasting power of Niagara on a scale un-
precedented.
But how? Did the water-wheels of centuries, or the water-powers of in-
dustrial New England or Switzerland point the way? Hydraulic experience
and prevalent practise — mills driven by water-wheels — were inadequate for
the new magnitudes and new conditions.
Could power be transmitted in large amount and over long distances, and
how?
In 1890 the world experts studying the Niagara power problem advocated
transmission by wire rope, by water pressure, by compressed air, by electricity.
Electricity seemed immature. Edison and Kelvin recommending, said, "elec-
tricity, direct current." Westinghouse planning, said, "alternating current,
but not now."
Electric systems were of many kinds; incandescent lighting near the source
used direct current; more remote, alternating. Each small group of arc lamps
ix
NIAGARA POWER
required a separate dynamo. Street cars used a different current. Motor
service was trivial, supplied usually from lighting circuits. A world-wide
search found little use of electricity except for local lighting. Here and there
longer distance lighting or motor operation was found, but the methods were
unsuited to a comprehensive system. A dynamo of one or two hundred horse-
power was respected ; very few were larger. Water-wheels of 500 horse-power
were few and larger ones rare. But all of these were inadequate. A projected
demonstration of a hundred horse-power or more, to be transmitted a hundred
miles, inspired hope.
Then a gigantic thing happened. At Niagara a new method in power was
evolved. The biggest power production enterprise in history was undertaken.
The old-time driving of a mill by its water-wheel was discarded for concen-
trated production of power, of power sufficient for a hundred mills and more,
although it was still undecided whether it would be transmitted by compressed
air or by electricity.
Large power ideas and electrical development happily advanced together
and out of the chaos of electrical practises and ideas of 1890 speedily came a
great plan, a great step, the great step in the transition from the old to the
new. It was the unprecedented production of power at one central station ;
it was the adoption of electricity in a power (not lighting) project, jumping
from machines of a few hundred horse-power to units of 5000 horse-power in
a 200,000 horse-power project.
Against the counsel of world-famed experts, polyphase alternating cur-
rents were adopted. Heterogeneous "systems" and circuits were replaced by
one comprehensive system for universal service.
Many elements were brought together — the Great Falls of Niagara, long
a barrier to transportation and contributing little to useful achievement;
mechanical power and industry, increasing through a century; turbines,
evolved from primitive water-wheels; electricity, rapidly maturing; electro-
chemical processes, newly discovered. By scientific study and engineering
planning and sturdy financial management, all these separate acts in the
drama of hydro-electric power suddenly merged in one great climax, the
pioneer modern power system.
X
PREFACE
And without halt or falter this pioneer plan has been followed in hydro-
electric practise and in steam-power development as well. The power systems
of the world today and the superpower systems planning for the future
employ large central stations and polyphase alternating current.
At Niagara the great step was taken in the transition from the epoch-
making century of local mechanical power to the new era of universal elec-
trical power, assuring to the twentieth century an advance over the nineteenth
comparable to that which the steam engine gave the nineteenth century over
the preceding centuries.
Niagara contributes both energy and materials ; she sends streams of silent
j)ower over radiating circuits to a million users; she supplies new materials
from the electric furnace to serve the world.
But beyond the marvel in magnitude and methods and results reckoned in
kilowatts and dollars are new achievements to be measured in human values.
Electric power becomes the universal servant to do the work of the world
and to illumine its darkness, contributing to health and wealth and comfort —
to the progress of civilization.
The story of Niagara power in the early nineties is the story of a persistent
quest for an adequate way to use its waters, and of a momentous triumph in
the age-long conquest over nature, for the Niagara adventure has shown how
to make power of greater service by multiplying the fruits of toil and creating
a new freedom for the development of the intellectual, the aesthetic and the
spiritual life of mankind.
And the man whose genius planned this marvelous quest and whose patient
and skillful co-ordination of mind and men and money achieved this miracle of
success was Edward Dean Adams.
xi
THE MANDATES
I. CONSOLIDATION (a war measure)
IN November, 1917, the Secretary of War addressed the Hydraulic Power
Company of Niagara Falls and The Niagara Falls Power Company, as
follows :
The President of the United States, by virtue of and pursuant to the authority
vested in him, and by reason of exigencies of the national security and defense, hereby
places an order with you and hereby requisitions the total quantity and output of electric
power which is capable of being produced and delivered by you.
You are directed to make immediate and continuous delivery of such power, in
accordance with the schedules hereto attached, until further notice.
This order shall be given precedence over any and all orders and contracts hereto-
fore placed with you.
To facilitate these plans, the War Department requested the two companies
to consolidate. A joint agreement of consolidation executed September 20,
1918, was approved the following month by the Public Service Commission
of New York State. The new company assumed the outstanding bonds and
other obligations of the constituent companies and by exchange of shares the
Hydraulic Power Company of Niagara Falls (Canal Project of 1853)
and The Niagara Falls Power Company (Tunnel Project of 1886 )
consolidated as The Niagara Falls Power Company, mcmxviii
II. THIS HISTORY
In view of the historical developments by The Niagara Falls Power Com-
pany, its retiring directors felt that there should be a suitable record of its
epoch-making achievements. At their final meeting on September 20, 1918,
the president stated that Edward Dean Adams, because of his great senti-
ment for and long association with the enterprise, could probably be persuaded
to undertake the task and upon motion by Francis Lynde Stetson and
Ogden Mills it was
Resolved: That the thanks of the board be extended to Mr. Adams for consentin"-
to prepare the history, which he is specially competent to prepare and which will be so
greatly appreciated by the board ; and that the president be and hereby is authorized
to have the same printed and a copy thereof sent to each stockholder.
xiii
HISTORY AND POWER PROJECTS
Volume One
CONSTRUCTION AND
OPERATION
REVIEWS AND REFLECTIONS
Volume Two
CONTENTS
Volume One
EARLY NIAGARA HISTORY
AND POWER PROJECTS
Chapter I Page
Early History of Niagara 3
Chapter II
Pioneers in Power Development at Niagara Falls 39
Chapter III
The "Mile Strip" and the Portage Lease, 1803-1805 51
Chapter IV
The Hydraulic Canal, 1847-1918 67
Chapter V
Projects That Failed to Materialize 87
Chapter VI
State Reservation at Niagara, 1869, 1879-1885 99
EVOLUTION OF
THE NIAGARA FALLS POWER COMPANY
Chapter VII
The Evershed Scheme. Niagara River Hydraulic Tunnel, Power and Sewer
Company, 1886 113
Chapter VIII
The Evershed Tunnel Project, Investigation and Modification, 1889-1890 . 139
Chapter IX
Evolution of the Central Power Station Plan, 1890 161
Chapter X
The International Niagara Commission, 1890-1891 179
RELATED AND ASSOCIATED COMPANIES
ORGANIZATION— FINANCE
Chapter XI
Hydraulic Rights and Federal Restrictions 195
1 New York State Laws, 1857-1918 199
2 United States Congress, 1906-1913 205
3 War Requirements, 1913—1918; Federal Water-power Commission
License, 1921-1925 217
4 Dominion of Canada, 1892-1925 228
Chapter XII
The Cataract Construction Company ; Organization, Operation, Liquidation
and Dissolution, 1889-1909 231
xvii
Chapter XIII Page
Engineering Organization; The Cataract Construction Company, 1890-
1900 ; The Niagara Falls Power Company, 1900-1918 267
Chapter XIV
Finances, 1890-1918. The Cataract Construction Company, 1890-1900;
The Niagara Falls Power Company, 1900-1918, 1924; Buffalo, Niagara
and Eastern Power Corporation, 1925 289
Chapter XV
The Landed Estate of The Niagara Falls Power Company and Its Filial
Companies, Niagara Development Company, Niagara Junction Railway
Company 317
Chapter XVI
Associated Companies for the Generation, Transmission and Distribution of
Niagara Power, 1890-1926 333
APPENDICES
A A Tribute to Dr. Coleman Sellers by Lewis B. Still well . . . ■ . . 361
B Erosiox and Recession of Niagara Falls 367
C Invitations to Capitalists 373
1825, by Augustus Porter and P. B. Porter 375
1847, by Augustus Porter 377
1877, by J. F. Schoellkopf and Associates 378
D Circulars to Stockholders of The Cataract Construction Company 381
1892, Number 16, Capital for Development and Junction Railway Com-
panies, The Niagara Falls Power Company 383
1903, Number 65, Purchase of Bond Scrip and Shares of Development and
Railway Companies at Par in Shares of Power Company at Par . . . 387
1918, Number 84, Part of Annual Report for the Year, Indicating Co-
operation with the U. S. War Department, Increase of Production and
Financial Operations 389
E International Niagara Commission 393
Letter of Invitation, London, June 25, 1890 395
Report of Secretary 401
Part I — Introduction and Summary of Projects 403
Part II — Detailed Abstract of the Projects 413
Part III — Awards of Prizes and Premiums 443
F When Niagara Ran Dry 447
G Resolutions of the Buffalo General Electric Company in Memory of
Charles R. Huntley 453
xviii
LIST OF ILLUSTRATIONS
Page
Aeroplane View of Niagara River Above and Below the American and Canadian
Falls Frontispiece
Paul A. Schoellkopf vi
Jacques Cartier, 1491-1557 5
Samuel de Champlain, 1567-1635 5
Title-page of Xouvelle Decouverte d'un tres grand Pays, by R. P. Louis
Hennepin, 1697 6
Niagara Falls in 1678, as Seen and Represented by Father Hennepin. Print
Dated 1697 7
Niagara Falls in 17-10 (Published by Popple) 8
Niagara Falls, Early French Print, Date Uncertain 10
Niagara Falls, Published in 1751, Based upon Kalm's Description and Maps of
Popple and French Prints 11
Robert Cavelier de la Salle, 1643-1687 13
Brigadier-General Ely Samuel Parker, U. S. Army, 1828-1895 13
International Boundary Line of 1819 (Map) 15
The Straits of Niagara, from the Block Map of United States Geological Survey 22
Section Showing Stratification of Rocks at the Brink of the Falls and at Middle
of Horseshoe Fall Described by Professor Gilbert as N. L., Niagara Lime-
stone; C. L., Clinton Limestone; Q. S., Quartzose Sandstone 23
Survey of Horseshoe Fall, 1891, by John Bogart, New York State Engineer . . 24
Length of Crestline of Horseshoe Fall Showing Recession. From Harper's Suicide
of the Falls 25
The Horseshoe Fall. From a Drawing by Capt. Basil Hall, of the British Navy,
Made in 1827 26
Scale Model of Niagara Falls Planned by John Lyell Harper for Experiments in
Remedial Works and Stream Control 27
Aeroplane View of Niagara Falls, Showing Power-houses of The Niagara Falls
Power Company and Port Day Entrance of Hydraulic Canal 28
Aeroplane View of the Horseshoe Fall, by Major H. K. Maxwell 29
Areas of Lake Surfaces and Drainage Basins Above Niagara River. Map from
United States Geological Survey, 1921 33-34
Profile of Great Lakes to Sea Level. Map from United States Geological Survey,
1921 35-36
Sectional View of Wheel-pit and Original Tail-race Tunnel Showing Stratification
of the Rocks Through Which the Tunnel Was Built 37
Sectional View of the Stratification at the Wheel-pit, Portal of Tunnel, and at the
Brink of the Falls 37
xix
LIST OF ILLUSTRATIONS — Continued
Page
Map of Historic Niagara, Made for Peter A. Porter, 1891 40
Map of Niagara Falls and Vicinity in 1805 42
Niagara Falls Village, New York, and Proposed City of the Falls, Ontario, Dated
1836 43
Deed from the State of New York to Augustus Porter and Benjamin Barton, on
June 27, 1814 44
Niagara Falls Village, Showing Proposed Hydraulic Canal, Submitted by P. Emslie,
December, 1846 46
From a Map of the Villages of Niagara Falls and Niagara City, Dated 1856 . . 48
Augustus Porter, 1769-1849 49
Niagara River and Vicinity ; Reproduced by Permission from the Map Issued
by the United States Geological Survey, in 1921 53-55
Map of the "Mile Strip" ; the Lands Along the Niagara River Reserved to the State
Out of the Cession to Massachusetts in 1786 59-61
Peter Buell Porter, 1775-1844 65
Congressional Medal of Peter Buell Porter 66
Certificate for One Share of the Capital Stock of the Niagara Falls Hydraulic
Company, Dated October 17, 1854 68
First Waters from the Hydraulic Canal Falling over the "High Bank," Unutilized,
1857 70
First Utilization of the Hydraulic Canal Falling over the "High Bank" by the
Gaskill Flouring Mill, Using Only 25 Feet of the 210 Feet Available, 1875 71
Manufactories of the Lower Milling District on the "High Bank" Served by the
Hydraulic Canal, No Wheel Using the Full. Head, 1893 " . . 72
The Great Schoellkopf Electrical Power-plant at the Foot of the "High Bank" of
The Niagara Falls Power Company Sending Power to Hundreds of Thousands
of Users, 1926 73
Jacob Frederick Schoellkopf, 1819-1899 83
Three Generations of the Schoellkopf Family 86
State Reservation at Niagara. Map from Dow's Anthropology and Bibliography
of Niagara Falls 106
Hypericum Kalmianum and Lobelia Kalmii. Flowers Discovered Growing at
Niagara 107
The Evershed Scheme Indicating Elevation of the Tunnel and Plan of the Canals.
Two Views : Vertical Section Showing Several of the Wheel-pits and Map
Indicating Location and Scope of Evershed Plan 114
Francis R. Delano, Frank A. Dudley, Henry Durk, W. Caryl Ely, Thomas
Evershed 122
LIST OF ILLUSTRATIONS — Continued
Page
Benjamin Flagler, James Fraser Gluck, Gen. Daniel W. Flagler, Myron H.
Kinsley, Lauren W. Pettebone 123
Alexander J. Porter, Peter A. Porter, Michael Ryan, Henry S. Ware, Thomas V.
Welch 124
Charles B. Gaskill, 1841-1919 136
State Reservation at Niagara. Map from Dow's Anthropology and Bibliography
of Niagara Falls 142
Thomas A. Edison at Work in His Laboratory 145
Dr. Henry Morton, 1836-1902 148
Frank Julian Sprague 150
Prof. Henry Augustus Rowland, 1848-1901 152
Marcel Deprez Explaining in 1883 His System of Electrical Transmission . . . 168
Author of Niagara Power, Sole Surviving Pioneer Director of The Cataract Con-
struction Company in Niagara Room, Brown's Hotel, London, August, 1926 177
Tablet on Inside of Entrance Door of Niagara Room, Brown's Hotel, London . . 178
The International Niagara Commission, 1890-1891 180
E. Mascart, 1837-1908 191
Andre Hillairet, 1857-1926 .192
Map of Niagara Falls and Village by P. Emslie, 1846 232
Main Tunnel Intersection by Wheel-pit Discharge Tunnel, Both of Same Size and
Form 246
Portraits of Pioneer Directors and Officers, Successor Directors and Officers of
The Cataract Construction Company and The Niagara Falls Power Com-
pany, Canadian Pioneer Director and President 250-265
Granite Voussoir Stones for the Tunnel Intersections 266
John Bogart 270
Albert H. Porter 271
La Partie Carree (The Cataract Construction Company) 273
George B. Burbank 277
Map and Profile Showing Method of Establishing Center Line and Grade of Tunnel 279
Sketch of the Alignment Tower Erected Near the New York Central Railroad
Station at Niagara Falls 280
William A. Brackenridge 282
Philip P. Barton 284
Lorin E. Imlay 285
xx i
LIST OF ILLUSTRATIONS — Continued
Page
Alexander D. Robb 286
Charles C. Egbert 287
Location of Inlet-canal and Power-houses 304
Stock Certificate of The Niagara Falls Power Company, mcmxvhi 310
Initials on Stock Certificate 315
Property Holdings of The Niagara Falls Power Company and Its Filial Com-
panies Before the Consolidation of 1918 319-321
Street in Echota, 1894 329
Map Showing Main Track and Sidings in 1890 of the Niagara Junction Railway 331
Charles R. Huntley, 1853-1920 334
Daniel O'Day, 1844-1906 341
George Urban, Jr 342
Population in Thousands, City of Buffalo 347
Assessed Valuation in Millions of Dollars, City of Buffalo 348
The Charles R. Huntley Station, Exterior 349
The "Electric Building" at Buffalo 351
Territory Served b}' Buffalo, Niagara and Eastern Power System 354
Interior of the Charles R. Huntley Station (Looking South) Showing Panels for
Location of Memorial Tablet 356
Terminal House Number One and Station "D," Buffalo, Niagara and Eastern
Power Corporation 357
Coleman Sellers, D.Sc, E.D., 1827-1907 362
xxii
EARLY NIAGARA HISTORY
AND POWER PROJECTS
EARLY HISTORY OF
NIAGARA
Chapter I
Seneca Names
Niagara
(Near-gar')
Great Falls
and their vicinity
(Gar-sko-so-vvar-neh)
AND
High Falls
( Date-gar-sko-sase)
EARLY HISTORY OF NIAGARA
CHAPTER I
PIONEER EXPLORERS
THE falls of the Niagara River have, from the time of their discovery,
been recognized as one of the most impressive natural features of the
world. For more than three centuries, visitors have come to them from every
land, and left their tributes of admiration.
The first historical report of the existence of the Great Lakes, which pour
their waters down the falls of Niagara, was very briefly made in 1545 ty
Jacques Cartier, the French explorer, in his account of his
voyage of ten years before, when he ascended the river
St. Lawrence to the site of Montreal. He credits the
Indians for information given him of the existence
of vast lakes, but does not mention the waterfall be-
tween two of them.
The earliest reference to Niagara Falls in all liter-
ature is found in that of France under date of 1604,
when Samuel de Champlain recorded in Des Sauv-
ages what the Indians on the St. Lawrence River
had told him about this waterfall, which, however, it
appears that he had not then seen.
In describing a later voyage (1610), Champlain
tells of having given a young
Frenchman, Etienne Brule, to the Algonquin Chief,
Iroquet, who showed his appreciation of Champlain's
confidence by the gift of a young savage named
Savignon, as a pledge of future friendship. By
reason of his acquaintance with many tribes, of his
occupation and his travels, there is no one who is
more likely to be entitled to the distinction of having
been the first of the white man's race to behold Ni-
agara than this Etienne Brule.
Champlain and Brule are thus two names of sur-
passing interest in the history of Niagara. The first
unquestionably heads the long list of authors who
have written about the great waterfall, while the other was possibly the first
of the many millions of palefaces who have visited it.
1 Lamb's Biographical Dictionary of the United States, Boston, 1900.
Jacques Cartier1
1491-1557
Samuel de Cham plain 1
1567-1635
5
NIAGARA POWER
The missionaries from the Catholic Church in France, with headquarters
in Quebec, established a mission to the Huron Indians. Their report in the
Jesuit Relation, published in 1649, mentions Lake Erie, which "discharges
itself in Lake Ontario over a cataract of fearful height." Dr. Gendron, Father
Ragueneau and Father Bressani were all members of the Huron Mission
between 1643 and 1652. In 1644 or 1645, Dr. Gendron used the words just
quoted in a private letter to a friend in France, but it was not published until
1660. Father Ragueneau used the same words in the Jesuit Relation, pub-
lished in 1649, and Father Bressani
also used them in the Relation pub-
lished in 1653.
The next name to become associated
with Niagara is that of Robert Cave-
lier de La Salle, who explored the river
and visited the falls in 1669, and, ten
years later, built and owned the Griffon,
the first commercial vessel of the upper
lakes, thus becoming the father of their
commerce.
For the earliest description of the
falls we turn to the following report of
Father R. P. Louis Hennepin, written
upon his visit in 1679 and published
in Utrecht in French in 1697, and in
London in English in 1698:
A description of the fall of the river
Niagara, which is to be seen betwixt the
Lake Ontario and that of Erie.
Betwixt the Lakes Ontario and Erie,
there is a vast and prodigious Cadence of
Water which falls down after a surprising
and astonishing manner, in so much that the
Universe does not afford its Parallel. 'Tis
true, Italy and Suedeland boast of some such things ; but we may well say that they are
but sorry Patterns, when compared to this of which we now speak.
To Hennepin we are indebted also for the first picture of the cataract, in the
same publication, and reproduced in this chapter.
6
NOUVELLE
DECOU VERTE
t D'UN TRES GRAND
P A Y S
Sit dans rAmerique,
ENTRE
Le Nowveau Q^lfCexique ,
E T
La Mer Glaciale,
Ave< les Cartes, & les Figures neceflai res , Sc de pluf
l'Hlftoire Namrellc & Morale , 8c les avantages,
qu'on enpeut river par l'<ftabliflementdes Colonies.
Li TOUT DEDIK
a
Sa Adajeft'e Britannique.
GulLLAUME III,
PAR L E
R. P. LOUIS HENNEPIN,
Mifflonaire Recoiled CST* Nctaire Apojlvlique.
, A. U TRECHT^
Chez GUILLAUME BROEdIlET ,
Marchand Libraire. MDCXCVU.
Niagara Falls Prior to the Horseshoe
Niagara Falls in 1678
as seen and represented by
Father Hennepin
Print dated 1697
(From. "Nouvelle Decouverte
d'un tres grand Pays" by
R. P. Louis Hennepin, 1697,
a copy owned by the author,
the title-page of which is
shown on the facing page)
Niagara Falls in 1740
of the series of maps of the British Empire
Published by Popple
Referred to by Kalm the Swedish botanist
who visited the falls in 1750
I
Niagara Falls
Early French Print
Date Uncertain
Niagara Falls
published in 1751
based upon Kalm's description
and maps of Popple and French prints
Compare fallen pines at left and three
pines on Goat Island
EARLY HISTORY
INDIAN NAMES
The relative position of the falls was correctly indicated on the maps of
1612 and 1632, printed upon the authority of the French explorer, Champlain,
but no record of their name is found until
1656, when they appear on Sansom's map as
"Ongiara." Hennepin's map of 1683 first gave
them their present name "Niagara," while a
map of 1692, published
in Willard's history of
the United States,
shows them with the
title "Jagara."
Brigadier - General
Ely S.Parker, in 1892,
stated with regard to
Robert Cavelier de La Salle the WOl'd
1613-1687
Niagara :
The name was origi-
nally applied to the whole
river from Lake Erie to Lake Ontario, but as the old French
fort at its mouth became of importance at an early date, the
name was, and is still, applied to that locality, though the
river has never lost its designation.
The High Falls are known as "Date-gar-sko-sase" and the
Great Falls and their vicinity as "Gar-sko-so-war-neh."
Brigadier-General
Ely Samuel Parker1
U. S. Army
1828-1895
The pronunciation of the word Niagara was modified from Near-gar' to
Ni-a-ga'-ra when introduced by the early French explorers, in accordance
with the usual accentuation in the Latin tongues ; and the further modification
to Ni-ag'-a-ra naturally followed and still persists in English-speaking
1 Ely Samuel Parker,soldier,a full-blooded Seneca
Indian, Chief of the Wolf and Seneca tribes and
the last Grand Sachem of the Iroquois, who held
the honored office of "Do-ne-ho-ga-wa" (Keeper of
the Western Door) was born in the Indian Reser-
vation at Tonawanda, New York, in 1828. His Indian
name was Ha-sa-no-an-da. He was successor and
"grandson"2 of "Red Jacket" as Chief of the Con-
federacy of the Six Nations: the Mohawk, Cayuga,
Oneida, Onondaga, Seneca, and Tuscarora. He died
at Fairfield, Connecticut, August 30, 1895. He
was educated at public school and took an engineer-
ing course at Rensselaer Institute, Troy, New
York, and studied law.
He served with the United States Engineer
Corps before Vicksburg, May, 1863, when he was
commissioned aide-de-camp and military secretary
on the staff of Lieutenant-General U. S. Grant,
with rank of Colonel. He was commissioned Briga-
dier-General of United States Volunteers, April 9,
1865, "for gallant and meritorious services during
the campaign, terminating with the surrender of
the insurgent army, under General R. E. Lee, at
which he was present." He retired as Brigadier-
General U. S. Army, March 2, 1867. He served as
United States Commissioner of Indian affairs,
1869-1871, and then resumed his profession of civil
engineer in New York City.
Buffalo Historical Society, Vol. VIII and Vol. XXIII.
13
NIAGARA POWER
countries, although various attempts have been made to revert to the histori-
cally correct and more beautiful pronunciation Ni-a-ga'-ra.
The directors, officers and engineers of The Niagara Falls Power Company
were encouraged to use the native pronunciation. It was an interesting
novelty in speech, but it was not understood, and the would-be students of the
Seneca tongue tired of explanations and gradually avoided that necessity by
adopting the customary pronunciation. An English engineer, who used the
Seneca pronunciation when purchasing his ticket at the office of the Grand
Central Station in New York, asked for "one ticket to Near-gar'." The
agent did not appear to notice the request. Again the request was made,
and the agent replied, "There is no such place on the New York Central
System. Please move on." The Englishman responded, "I know better.
I have been there. Well, then, give me a ticket to Ni-ag'-a-ra, as you very
improperly pronounce it, sir!"
PHYSICAL FEATURES: ACCESSIBILITY OF NIAGARA
As a site for the development of water-power, the falls of Niagara stand
without a rival in all the world. The lover of the sublime in nature might
choose from among the world's majestic spectacles of moving water a few
other great cataracts deserving of a place beside Niagara. Central Africa has
the Victoria Falls of the Zambezi, and South America the great Sete Quedas
of the Parana, the Iguassu and the beautiful Kaieteur. But these are all remote
from large centers of civilized life, if not actually in the depths of the jungle,
and all located in tropical regions which have never been favorable to occupa-
tion by the white race. Niagara, on the other hand, enjoys the temperate
climate which has fostered every progressive civilization throughout history.
As for accessibility, to say that Niagara is not isolated like its rivals of the
tropics, would be quite inadequate. It occupies a truly strategic position upon
one of the great trade routes of the continent. The importance of this location
from the earliest times is well recognized by Peter A. Porter1 in his Niagara
an Aboriginal Center of Trade:
Niagara, in aboriginal days, was then, as it is now, the geographical center of the
eastern one-third of North America ; it was the center of population among the many
and widely distributed Indian tribes ; it was the most accessible, the most easily reached
place from all directions in America. Indian trails led toward it from all points of the
compass ; it was easily accessible by water from every quarter.
This important position has never been lost ; it has, indeed, been strength-
ened by the growth of cities and the building of roads and railroads. The
1 Deceased, December, 1925.
14
International Boundary Line
is indicated by the heavy line passing mid-
stream over the fall, midway between the toe
of the horseshoe and Iris or Goat Island, and
shown on the "true map" prepared by the
commissioners in 1819 who fixed the line
■finally and conclusively" above and below
Niagara Falls.
NIAGARA POWER
footprints of the white man, like those of the red, have converged more and
more toward Niagara.
INLAND SEAS
In another fundamental respect Niagara is favored over other great cata-
racts mentioned. The reservoir capacity of all these latter streams is meager,
resulting in such variations of flow from season to season that the continuous
power available for practical development is thereby greatly reduced.
These conditions contrast sharply with those at Niagara, where four great
lakes, or inland seas, unite to form a series of reservoirs having the stupendous
capacity that may be expressed as several thousand cubic miles, but cannot be
even approximately estimated because the work of determining the depths of
the larger lakes has not yet been completed, and the few scattered soundings
in the deeper portions show that the bottoms are extremely irregular. Lake
Superior alone is the largest body of fresh water in the world. If this vast
reserve of water could be gradually exhausted by drainage, it would be suffi-
cient, without additional rainfall, to continue the present flow of Niagara for
one hundred years. These reservoir lakes, or seas, cover an area of 87,620
square miles, and, with their connecting rivers, have a shore line of about
8300 miles.
Notwithstanding the enormous storage capacity of these inland seas, their
value for power purposes is dependent upon their overflow and this is based
upon the rainfall upon their surfaces and the run-off from the drainage basin
of the Niagara River, that comprises an area of about 250,000 square miles,
equivalent to the combined areas of states of New York, New Jersey, Penn-
sylvania, Ohio, Indiana and about one-quarter of Illinois. About 35 per cent
of the water that falls as rain upon this great expanse of territory passes over
the falls of Niagara. Uniformity in the rate of flow is assured by the great area
of the lakes which serve as reservoirs — 87,620 square miles.
INTERNATIONAL BOUNDARY LINE
The international boundary line at Niagara Falls is invisible, and only
correctly indicated, even in public documents, when reproduced from the map
attached to the official example of the Treaty of Ghent, of 1814, between the
United States and Great Britain, which ended the War of 1812, and is on
file in the office of the Secretary of State in Washington.
This map was prepared from an actual survey made by order of the board,
Peter B. Porter and Anthony Barclay, commissioners, and bears their certifi-
cate that it is a true map of part of the boundary designated by the sixth
article of the Treaty of Ghent.
16
EARLY HISTORY
This survey was made in 1819 and established the boundary line "through
the middle of Lake Ontario until it strikes the communication by water be-
tween that lake and Lake Erie, thence along the middle of said communica-
tion into Lake Erie." By agreement of the commissioners, the line of de-
marcation in the Niagara River was the center of the deepest channel of
the river's flow and the map and its signed declaration fixed the international
boundary line "finally and conclusively."
In the report and map of recession-lines of the falls prepared in 1896 by
Joseph W. W. Spencer, under a commission from the Director of the Geo-
logical Survey of Canada, it is stated that :
The international boundary line, showing the Greater Falls to be in Canada, has
been laid down on the map.
Beside the other scientific results, features bearing on international questions have
arisen in connection with the effects of the draining of the falls at the international
boundary, and the lowering of the lakes by power diversions, as also the ownership of
the water-rights of Niagara Falls.
Even the establishment of the boundary line at the falls comes to be a geological
question and not merely one of ordinary surveying.
Professor Spencer states that "the apex of the falls (Canadian) is now
(1906) estimated about 400 feet west of the boundary line, thus placing the
crescent within the Canadian territory."
The international boundary line is the line of separation shown on the
certified treaty map. The horseshoe deep water channel may move easterly
toward Goat Island on the American side, but the international boundary
line remains as "finally and conclusively" shown on the "true map" of the
commissioners' survey.
LAND TITLES
Prior to 1600, the ownership of the land on each side of the Niagara River,
including Goat Island and its group of smaller islands at the Great Falls, was
undoubtedly in the Kaw-quaws, or Neuter' Nation of Indians. The Seneca
Indians subsequently took possession and claimed the title to these lands by
conquest from the Neuters, whose tribe they had destroyed.
The falls of Niagara were successively in the possession of the Indians by
inheritance, the French by discovery, the English by conquest, the American
colonists by revolution, and the State of New York by cession, treaty and
purchase, the last two including the American Falls and part of the Horse-
shoe Fall.
France and England each asserted her rights to the locality, France by
virtue of prior explorations, discovery and occupation, and England by virtue
1 As named by the early French missionaries, meaning peaceful.
17
NIAGARA POWER
of the discoveries of her early navigators and of later treaties with the Indians.
Until 1764, the Indian ownership was recognized by both France and Eng-
land. French influence prevailed from 1669 to 1759; then the English ac-
quired the property, which they occupied until the close of the Revolution and
after, until 1796. The title to the islands remained in the Senecas until they
ceded it to the State of New York in 1815.
POWER SURVEYS
The record of the successive instrumental surveys that have been made of
the flow of these waters, to determine its quantity and potential value, from
1841 to 1924, is of historical interest.
The earliest calculation of the volume of water and the extent of the motive
power of Niagara was made in 1841 by the engineers, Zachariah Allen, of
Providence, Rhode Island, and E. R. Blackwell, of Black Rock, New York.
From their measurements at Black Rock, near Buffalo, as published, they
calculated by the formula' established by Eytelwein, the flow of Niagara
River as 374,000 cubic feet per second. Upon this basis, and taking the height
of the fall at 160 feet, Allen estimated the "mechanical force or motive power"
that the waterfall of Niagara is capable of imparting, as 4,533,334 horse-
power, after allowing one-third part for waste of effective power in the
practical application of water to water-wheels. The initial power is therefore
approximately 6,800,000 horse-power.
The U. S. Army engineers on the survey of the Great Lakes, in 1868
estimated the total available power of Niagara Falls at about 6,000,000
horse-power.
From measurements made in 1900, John Bogart, New York State engi-
neer and surveyor, gave the flow of Niagara as 275,000 cubic feet per second.
The figure given in 1901 by the United States Geological Survey for the
average flow is 222,000 cubic feet per second.
The report of Francis C. Shenehon, principal assistant engineer, United
States Lake Survey, 1906-1907, includes the following statements regarding
the Great Lakes and Niagara River:
The drainage area covers 255,000 square miles, of which 59.4 per cent, or 151,500
square miles, lies on the American side of the international boundary lines.
The annual rain and snowfall over this watershed amounts to nearly 31 inches of
water. The outflow spilling from Lake Erie into the Niagara River corresponds to a
depth of about 11 inches spread over this great drainage area of more than a quarter
of a million of square miles.
At an ordinary or mean level of Lake Erie, the flow of the Niagara River is about
210,000 cubic feet per second. Were all this water utilized under a head of 202.4 feet
1 Long since replaced by formulae considered of greater accuracy.
18
EARLY HISTORY
(which is close to the head secured by The Niagara Falls Hydraulic Power and Manu-
facturing Company), the theoretical mechanical horse-powers would aggregate nearly
5,000,000 (4,830,000).
Lieutenant-Colonel C. S. Riche, of the United States Corps of Engineers,
reported September 30, 1911, that for mean stages of lakes Erie and Ontario,
1860-1910, Niagara River had a total fall of 326.38 feet and a discharge of
210,000 cubic feet of water per second, which represents a theoretical energy
of nearly 8,000,000 horse-power.
The volume of Niagara waters depends upon the height of Lake Erie at
Buffalo, and this varies with the direction and intensity of the wind. A pro-
longed gale on Lake Erie in the direction of its outlet causes the waters to
become heaped up at that end from 4 to 5 feet and produces a corresponding
rise of Niagara River. A subsidence of the level of the lake and river to an
equal extent occurs whenever a gale takes place in an opposite direction. Such
variations are not uncommon, and have been brought about in the course of
a few hours. Changes in level of Lake Erie at the source of the Niagara River
of as much as 8 feet have been noted. On March 29, 1848, the floating ice in
Lake Erie was driven by the gale to the lake outlet, quickly blocking that
narrow channel and shutting off a large proportion of the river's flow. The
American Falls were passable on foot, but for that day only, as is described by
an eye witness, in Appendix F in this volume.
A change in elevation of 1 foot in Lake Erie will cause a change in elevation
in the Chippewa-Grass Island Pool of about .55 foot.
The seasonal variation in lake level, due to variations in rainfall, has not
exceeded 2 feet in the last sixty years.
In his testimony before the commissioners of the state reservation in 1884,
Peter A. Porter stated that, when the wind is down the lake, it makes 1
foot difference in the level of the raceway on the rapids above the falls, in-
creasing the depth to that extent.
These minor fluctuations of level are trivial in comparison with the seasonal
changes of volume to which most of the great waterfalls of the world are
subjected.
19
NIAGARA POWER
ESTIMATES BY VARIOUS AUTHORITIES 1841-1924
REFERRED TO ABOVE
Dates
Authorities
Cubic feet
per second
Theoretical
mechanical
horse-power
1841
Blackwell and Allen, engineers
using 160 feet head
374,000
6,800,000
1868
1890
U. S. Army engineers on survey of the Great
Lakes
John Bogart, New York State engineer and
surveyor'
273,329
to
280,757
275,000
6,000,000
iyui
United states ideological survey
222,000
1906
to
1907
United States Lake Survey ; report of Colonel
C. S. Riche to chief of engineers
using full 326 feet head
210,000
8,000,000
1908
United States Lake Survey ; Colonel F. C. Shene-
hon, principal assistant engineer4
At mean level of Lake Erie
using 202 feet head
210,000
4,830,000
1924
Smithsonian Institute, Study of Natural Re-
sources. Samuel S. Wyer, associate in
mineral technology, United States National
Museum"
Natural mean flow for sixty-four years
using full 326 feet head
205,000
6,000,000"
1 Seventh annual report of commissioners of New York State Reservation 1889-1890.
2 United States Geological Survey Map of Niagara River and Vicinity, G. K. Gilbert, May, 1901.
3 United States Lake Survey, Preservation of Niagara Falls, 1911. House of Representatives Docu-
ment 246, Sixty-second Congress, Second Session, page 11.
4 United States Lake Survey, Senate Document 105, Sixty-second Congress, First Session, page 20. An
exhaustive investigation.
6 Smithsonian Institute, Study of Natural Resources^ Niagara Falls, January 15, 1925.
" Horse-power which could be developed.
DIFFICULTIES IN POWER DEVELOPMENT
Situated on one of the great natural channels of commercial intercourse be-
tween the East and the West, it was not unreasonable to expect that with the
improvement of the country, near and remote, the vast water-power would be
20
EARLY HISTORY
promptly utilized and the population proportionally increased. That this did
not occur as rapidly as the early settlers had hoped was owing to causes not
at first appreciated, but now well understood as briefly described here.
In order to understand some of the physical difficulties that for many dec-
ades prevented the utilization of the waters of Niagara, attention should be
given to the unusual natural features of the location. These are indicated by
the block diagram of Niagara River and accompanying maps and diagrams.
The block diagram shows :
The country traversed by the river constitutes two plains, each extending for a con-
siderable distance east and west beyond the field of the map. The upper plain has a
gently undulating surface with a general height of 600 feet above sea level. The lower
plain borders Lake Ontario and is comparatively smooth except where streams have
washed out narrow valleys ; its southern edge has a height of 380 to 400 feet, and it
slopes northward to about 260 feet at the lake shore. Where the plains approach each
other the upper is about 200 feet above the lower and they are separated by a steep
bluff with a cliff at top. This bluff is called the Niagara escarpment. In some places
it is divided into two parts, so that the descent from the upper plain to the lower is by
two steps.1
A mile above the falls the river enters upon the great upper rapids, con-
sidered by many to present a spectacle no less impressive than that of the
cataract itself. These rapids account for 51 feet of the descent, and the Great
Falls for 164 feet.
Below the falls the river runs in the deep gorge which it has carved out of
the upper plain. For some distance there is a navigable reach of deep water.
The remaining 5 miles to the Niagara escarpment is almost continuous rapids,
with the famous Whirlpool as the dominating feature. In its course below
the falls the river descends 99 feet more to the level of the lower plain, where
it flows in a broad, deep channel for the remaining 6 miles to Lake Ontario.
The total descent in the upper and lower rapids and the falls is 314 feet.
Although the great cataract itself offers the most magnificent display of
available power, the upper rapids, because of their low banks, lent themselves
more readily to power development by the more primitive methods in which
water diverted from the river above the rapids is carried by a canal along the
river bank for use at comparatively low head to supply wheels driving mills
or in which wheels placed in the stream are driven by the current. In tracing
the history of Niagara power we are therefore not surprised to find these
rapids the scene of the earliest and, in fact, of all the applications of power
until about 1870, with mills along the main shore, or on the islands.
1 G. K. Gilbert, 1901. From United States Geological Survey Map of Niagara River and Vicinity.
21
EARLY HISTORY
FEET ABOVE
MEAN SEA LEVEL
Serious difficulties were encountered when it was proposed to develop a
large amount of power from the cataract itself. Large water-wheels for
operation at a head of 160 feet or more were not available; even if they had
been, the cost of hydraulic construction in the Niagara limestone formation
would be very great; even if the power were developed, the old plan of a "mill
over a wheel-pit" did not promise success because available land for factories
in the vicinity of the falls was limited. Furthermore, no large amounts of
power were used in the vicinity of the falls although there were large power
users at Buffalo. The cost of power development was so large that only a
very large project would be finan-
cially justified. Hence, the high head
of the cataract was not availed of at
once, but awaited the call for large
amounts of power and the develop-
ment of modern machinery and
methods. The utilization of the total
fall in the upper and lower rapids as
well as the cataract, involving con-
structions of colossal magnitude, has
received consideration only very re-
cently.
The scenic beauty of the great cata-
ract made the situation still more diffi-
cult for those who wished to put the
river to practical use. Sooner or later,
the public was certain to resist any
methods of utilization of the falls that
encroached upon their natural gran-
deur. This consideration will be found
to have been a very potent factor in
shaping the course of the develop-
ment of Niagara power and it is one
of the supreme triumphs of that de-
velopment that the utilitarian and aesthetic points of view have been so
well reconciled.
In the geological structure1 of the Niagara region which has made possible
the falls and the gorge will be found the source of many perplexing problems
1 See Appendix B for extract from final report of the Fourth Geological District of the State of
New York, 1843, by James Hall, state geologist, Chapter XX, Niagara Falls, Its Past, Present and
Prospective Condition, pp. 383-404, with important illustrations.
mm>(> // 'Mi\ fW ' 1
Section Showing Stratification of
Rocks at the Brink of the Falls
and at Middle of Horseshoe
Fall Described by Professor
Gilbert as N. L., Niagara Lime-
stone ; C. L., Clinton Limestone ;
Q. S., Quartzose Sandstone
23
NIAGARA POWER
that have arisen in every stage of Niagara development. The first rock en-
countered at the cataract is the hard, strong Niagara limestone, extending
at this point to a depth of 80 feet. Below are soft, weak shales, containing
only a few ledges of harder material. The history of Niagara shows how
the development of power has been retarded by this combination of strata.
We see the pioneer faced with huge expense in his endeavors to excavate
surface canals and raceways through the hard limestone; while his suc-
cessors, in order to preserve the hydraulic head obtained above the falls,
were obliged to construct their discharge tunnel at the level of the lower
river and pass into a material which could not be depended upon to form
a safe and durable arch without costly reinforcement. The modern engineer,
who obtains his hydraulic head on the bluff near the point of its utilization,
has designed and built a pressure tunnel through the kind of rock best cal-
culated to produce a permanent structure, with the least capital cost.
RECESSION OF HORSESHOE FALL
The progress of the recession of the Horseshoe Fall has been ascertained
by various trigonometrical surveys under official auspices including the
Survey of Horseshoe Fall
1891
By John Bogart, New York State Engineer
24
EARLY HISTORY
following: 1842 by New York State Survey, 1875 by United States Lake
Survey and 1891 by New York State Survey that is here reproduced.
The history of the formation of the horseshoe is shown by the following
map :
From Harper's Siticide of the Falls
Length of Crestline of Horseshoe Fall Showing Recession
1764 . . . 1800 Feet 1875 . . . 2350 Feet 1905 . . . 2850 Feet
1842 . . . 2030 Feet 1890 . . . 2750 Feet 1915 . . . 3020 Feet
The recession of the falls is due to this peculiar rock structure which has
received much attention in recent years, and which has a bearing upon power
development. This process of disintegration is described by G. K. Gilbert,
geologist, United States Geological Survey:
In the principal division of the cataract, called the Horseshoe Fall, the falling water
plunges into a deep pool, which is kept in fierce agitation. The surging water wears away
the shale and thus gradually deprives the limestone bed of its support. From time to
time blocks of the limestone break away, falling into the pool below. Each fall of lime-
stone makes the position of the cataract retreat upstream and thus lengthens the gorge.
Between 1842, when a careful map of the cataract was made, and 1891, when the mapping
was repeated, the cataract retreated and the gorge was lengthened about 200 feet, the
25
NIAGARA POWER
average rate being between 4 and 5 feet a year. . . . But tbe crestline of the American
Fall has not changed its form appreciably since the year 1827, when the first accurate
drawings of it were made. Its recession must be many times slower than that of the
Horseshoe Fall.
In its annual report of December 19, 1918, the commissioners of the New
York State Reservation stated that the recession of the rock rim of the
Horseshoe Fall is progressing at the rate of about 62 inches per annum.
An examination of old prints indicates that the present horseshoe formation
of the Canadian side of the fall must have appeared after the year 1751, not
From a camera lucida drawing made in 1827 by Captain Basil Hall of the British Navy
The Horseshoe Fall
more than 174 years ago, as there are no indications in these views of any such
crestline.
The "horseshoe" section of Niagara Falls is the best known feature of that
scenic wonder. Its changing form excites the study of all visitors. They admire
the dark green of its deepest current, and regret to read of the recessions that
are chronicled and that they can visualize.
An interesting evidence of the recession of the Horseshoe Fall was reported
by James T. Gardner,1 in 1879, who placed the survey of F. R. Blackwell in
1 Director of the New York State Survey of the Preservation of the Scenery around Niagara Falls.
26
EARLY HISTORY
1842 upon the map of the United States Lake Survey of 1875 and describes
the comparison as follows :
The map which accompanies my report shows the unexpected fact that the Horseshoe
Fall has receded in places 160 feet during thirty-three years, and that a large
island has disappeared which formerly existed in the midst of the Canadian Rapids.
These remarkable physical changes are of deep interest, and their progress should
be watched and recorded with great care. The conclusions to be attained by accurate
geological study of the region open almost limitless views into far-reaching vistas of
the continent's physical history.
From actual observations made during the past ten years it is known, Mr.
John Lyell Harper states, in his The Suicide of the Horseshoe Fall, 1918,
that the crest is receding at the point of greatest erosion, at the rate of approxi-
mately 8 feet per year, while on the sides and heel almost no recession is noted.
0
Scale Model of Niagara Falls Planned by John Lyell Harper for Experiments
in Remedial Works and Stream Control
Note crestlines of 1764 and 181-2
27
EARLY HISTORY
VISION OF FUTURE CONDITIONS
Mr. Harper1 in an article in Power states :
The ultimate development of Niagara Falls will have a 300-foot head, when each cubic
foot of water per second will produce an amount of power capable of lifting a 100-ton
burden one inch from the tired shoulders of man.
Engineering thought blazes the trail to the most efficacious use of Niagara's waters.
This thought now takes form in action, and action removes the doubt that theory cannot
Photograph by Underwood & Underwood, N. V., taken by Major H. K. Maxwell
Aeroplane View of the Horseshoe Fall
Made October 20, 1920, at 700 fret elevation
solve. Results exceed the vision and now Niagara, more than ever, supplies the material
wants of man.
With equal vision, skill and courage must engineering control that part of the waters
which may be set aside for aesthetic purposes. Engineering must shape its turbulence,
and so direct its cataract-forming currents that the maximum of grandeur may obtain.
Engineering has made it possible to convert 90 per cent of the stored energy of Niagara's
waters into useful forms of electrical power. Engineering can, and will, take but half the
1 Vice-president and chief engineer of The Niagara Falls Power Company. Deceased, 1924.
29
NIAGARA POWER
river's flow and raise its aesthetic values to a level with the hydro-electric efficiency now
obtaining. With half the water, engineering will enhance the natural beauty, and render
a more sublime spectacle than Nature, uncontrolled, now furnishes with all of the water.
The annual report of The Niagara Falls Power Company, 1924, states
concerning the scale model :
During 1923 and 1924 there was built, under Mr. Harper's direction, a scale model
of the Niagara River including the upper rapids and the cataracts. Here experiments
have been conducted in stream control. Remedial works of different types have been
built upon the model to determine the increase that may be made in the economic utiliza-
tion of Niagara while assuring the maintenance of its sublime scenery.
This marked recession is a factor to be reckoned with in the future in the
location of expensive installations drawing water from the river above the
falls. If, however, the recession continues at the rate of only about 5 feet per
annum, the intake of The Niagara Falls Power Company, situated about
6000 feet above the cataract, would not be disturbed in its present location
for about 1200 years.
There is also a very remote danger, geologists inform us, of a possible future
diversion of water from the great Niagara reservoirs to the Mississippi River.
"With the present rate of calculated terrestrial uplift in the Niagara district
(1.25 feet a century) and the rate of recession of the falls continued, or even
doubled, before the cataract shall have reached the Devonian escarpment at
Buffalo, that limestone barrier shall have been raised so high as to turn the
waters of the upper lakes into the Mississippi drainage by way of Chicago.
An elevation of CO feet at the outlet of Lake Erie would bring the rocky floor
of the channel as high as the Chicago divide, and an elevation of 70 feet would
completely divert the drainage. This would require 5000 or 6000 years at the
estimated rate of terrestrial elevation."1
1 The Duration of Niagara Falls. Prof. J. W. W. Spencer, 1895.
30
EARLY HISTORY
POWER POSSIBILITIES
MAPS AND POWER DEVELOPMENT CHARTS OF THE
GREAT LAKES, THE STRAITS AND FALLS OF
NIAGARA, ALSO THE ST. LAWRENCE RIVER
1925
THE "MERE NON-USE OF THE WATERS OF NIAGARA FALLS
IS NOT THEIR PRESERVATION"1
Dr. Charles D. Walcott, secretary, Smithsonian Institute, Washington,
D. C, recently stated:
The Niagara River is more than a mere boundary stream between two friendly
nations. It is the dividing line between two radically different methods of rendering
electric service to the public ; governmentally owned on the Ontario side, privately owned
but governmentally regulated on the United States side.
Two and one-half times more power than is now developed can be developed and still
maintain an adequate scenic effect. Real preservation can be brought about only by
frankly facing the engineering and geologic facts now obvious and the development of an
international preservation program that will insure maximum use with the continued
preservation of an adequate scenic effect.
ADDITIONAL POWER THAT COULD BE DEVELOPED AND STILL MAINTAIN PROPER SCENIC EFFECT*
The natural mean flow — average of 64 years — of Niagara River,
in cubic feet per second 205,000
Water diversions, in cubic feet per second —
New Welland Ship Canal for navigation 2,000
New York State Barge Canal for navigation 1,200
Chicago Drainage Canal for sewage dilution 8,000
Diversion for power purposes authorized by present treaty 56,000
Diversions' 67,200
Minimum flow over falls for proper scenic effect and ice sluicing 50,000
Appropriations" 117,200
Additional2 water that could now be harnessed 87,800
This water could develop about 2,500,000 additional horse-power. This total might be cur-
tailed for a few days each spring to give the extra water needed to sluice the ice out of the gorge.
The practical demonstration of the possibilities of protecting the Horseshoe Fall from its
own destruction, and the increase of power resources without detriment to the scenic features
of the fall, as recently proposed by John Lyell Harper by his operating out-door model, may be
seen on page 27.
1 Niagara Falls: Its Power Possibilities and Preservation, by Samuel S. Wyer, associate in mining
technology, United States National Museum.
- Words are not italicized in the original.
31
NIAGARA POWER
DATA PERTAINING TO THE GREAT LAKES
From reports to the United States Government
and other sources
The system of the great fresh water lakes or inland seas, which drain through the Straits
of Niagara and the Saint Lawrence River into the Atlantic Ocean, extends half-way across
the continent of North America.
The water surfaces of these great lakes, excluding Lake Ontario, with the land sloping into
them and contributing to the falls of Niagara, form a drainage basin having a total area equal
to nearly three times the total area of Great Britain and Ireland, about 50,000 square miles
more than the total area of France, and more than sixteen times the total area of Switzerland.
The work of determining the depths of the larger lakes has not yet been completed but the
few scattered soundings in the deeper portions show that the bottom is extremely irregular.
The fall of 326 feet between the water levels of Lake Erie and Lake Ontario occurs in the
vicinity of Niagara Falls and is distributed as follows:
Feet
Lower Niagara River 1
Five miles of rapids, between Lewiston and Suspension Bridge 94
Pool between the bridge and the falls 5
Falls of Niagara 164
Rapids immediately above the falls 51
Upper Niagara River 11
Total fall of Niagara River between lakes Erie and Ontario .... 326
The Niagara River forms the boundary between Canada and the State of New York. The
line of this international boundary is that established by commissioners in 1819, as shown
upon the map attached to the International Treaty of Ghent of 1814 and shown herein
on page 15. The falls of Niagara are 23 miles below Lake Erie, and 14 miles above Lake
Ontario. The "Horseshoe Fall" is 163 feet high, and 2600 feet wide. The other channel,
in the State of New York, forms the 'American Falls," which are 166 feet high at the eastern
side, and 1000 feet wide, both falls comprising 3600 linear feet of water.
At the falls the river turns directly at right angle and flows through a gorge, the cliffs of
which are 1000 to 1200 feet apart, with nearly perpendicular walls rising 210 feet above the
water. The river below the falls has a maximum known depth of 192 feet, and a width of
from 800 to 900 feet.
Two miles above the falls the river has a width of over 7000 feet. The extreme limits of
variation in the depth of the river above the falls is 3Yo feet, but these limits are very rarely
reached. The ordinary variation is about 1 foot. Below the falls the extreme of variation
reaches 15 feet. Generally a variation of 1 foot above the falls is followed by a change of
level of 5 feet below the falls. These slight changes are of a short duration and are due mainly
to long continued and violent wind or sudden great accumulations of ice.
It has been estimated that if the average discharge of all the lakes passed through a river
1 mile wide, with a mean velocity of 1 mile per hour, such a river should have a depth of 31
feet from shore to shore.
The flow of water at the falls of Niagara is, for practical purposes, unlimited, never failing,
constant and pure.
32
TABLE OF DISTANCES
Statute
Miles
Nautical
Miles
Buffalo to Detroit ....
261
227
" " Chicago ....
893
770
" Soult Ste. Marie .
592
511
" " Dulutli ....
986
S50
Detroit to Chicago ....
633
550
" " Sault Ste. Marie .
331
287
" " Duluth ....
720
530
AREAS OF LAKE SURFACES AND DRAINAG
BASINS ABOVE NIAGARA RIVER
and connecting
waterways
Area at
lake surface
Total area
of basin
in square miles
Superior
31,810 (n)
80,700 (a)
MMugan
22,400
09,040
Huro
23,010 (li)
72,600 (b)
st.cV
400 (c)
6,420 (c)
■Brie^
9,940 (d)
34,680 (d)
87,020
263,4-10
(a) Includes St. Mary's River above St. Mary's Falti.
(I)) Includes North Channel, Georgian Bay, and St.
Mary's River below St. Mary's Falls.
(c) Includes St. Clair River.
(il) Includes Detroit River.
-600
FEET ABOVE 600-
HORIZONTAL SCALE
Sectional View of Wheel-pit and Original Tail-race Tunnel Showing Stratifi-
cation of the Rocks Through Which the Tunnel Was Built
The great cataract is the embodiment of power.
In every second, unceasingly, seven thousand tons of
water leap from a cliff one hundred and sixty feet
high, and the continuous blow they strike makes the
earth tremble.
Niagara Falls and Their History
by G. K. Gilbert
1895
PIONEERS IN
POWER DEVELOPMENT
AT
NIAGARA FALLS
Chapter II
PIONEERS IN POWER DEVELOPMENT
AT NIAGARA FALLS
CHAPTER II
POWER FROM THE UPPER RAPIDS
HE first use of the power of Niagara River at the falls is believed to have
A been made about 1757-1758 by a Frenchman, Chabert Joncaire, J r.,1 who
built a short and narrow loop canal on the river bank a short distance above
the falls. Power was probably developed by a wooden overshot wheel under
a head of about 6 feet, to cut logs on what was the end of Mill Street and is
now known as First Street, on the present state reservation, opposite the
upper end of Goat Island.
This sawmill was repaired and used by John Steadman, who, about 1760,
settled on the bank of the river near the falls on a large tract of land he claimed
and received under an Indian grant. Steadman also occupied and cleared
some portion of Goat Island and stocked it with goats, thus giving the island
its name. He was the British master of the Niagara portage during most of
the latter half of the eighteenth century. But little was done during this
period to change the wild aspect of the country.
In 1795 there first comes into this history the name of the Porter family,
a name that has been closely linked with Niagara development through all the
succeeding generations.
Augustus Porter visited the falls in that year, and again in 1796, on his way
with a company of surveyors to explore and survey the "Western Reserve," in
what is now the State of Ohio. It was probably due to the favorable im-
pressions which he received on those visits, that his family became interested
in the development of Niagara and acquired important holdings of real estate
including land near the falls.
It will be noted later, in further detail, that the Porters not only became
large land-owners, but became identified with Niagara development in con-
nection with transportation between the lakes.
Early in 1805, Augustus Porter built a sawmill and blacksmith's shop,
preparatory to other improvements. In 1806, he removed his family from
Canandaigua, New York, to the old Steadman house, near Fort Schlosser.
The next year he built a grist-mill, the first to be established on the American
shore at the falls, with two "run of stone,"2 on the site of the original French
sawmill, using therefor a separate intake that is indicated upon a map of
Niagara Falls village and river made and published by Joseph Wentworth
Ingraham, of Boston, in 1836, and shown on page 43.
1 Described by historian Peter A. Porter, as "Soldier of France, Master of the Niagara Portage and
Dictator of the French Government's trade witli the West."
2 Appendix H, Volume II.
41
NIAGARA POWER
In 1809 he erected a rope-walk and a tannery, and other industries soon
followed, with dwelling houses.
These were the beginnings of industrial Niagara. By 1812, it is stated,
most of the large forest trees north of Bridge Street had been cut down,
but young trees and undergrowth, particularly near the river, were very thick
and close, quite down to the falls.
Map of Niagara Falls and Vicinity in 1805
LAND PURCHASES AND IMPROVEMENTS
It was not until June 27, 1814, that Augustus Porter and his partner,
Benjamin Barton, finally secured from the commissioners of the land office
of the State of New York, the patents of two of the lots purchased by them
in 1805 at the auction sale of the "Mile Strip," particularly described in
Chapter III. These were lots 42 (19 acres) and 43 (100 acres) at the apex
of the angle formed by the river at the falls, bordering the upper rapids and
extending to the very brink of the great cataract. In his field notes the
Surveyor-General of the state had marked these two lots as "very valuable
for water-power."
42
PIONEERS IN POWER DEVELOPMENT
Niagara Falls Village, New York
and Proposed City of the Falls, Ontario, Dated 1836
43
ft
O
<
o
H
O
a
w
n
w
PIONEERS IN POWER DEVELOPMENT
According to a map from a survey by George Catlin, in 1831, the industries
then located on the banks of the Niagara River, utilizing the power developed
by the loop canals, enumerating from the bridge to and over Bath Island to
Goat Island are as follows: at the right hand side of the bridge across the
river, Trip Hammer Nail Factory; on the left or easterly side, a paper-mill
and a grist-mill; at some distance, a second grist-mill followed closely by a
woolen factory, and, slightly beyond, a sawmill, not far from the residence
of Judge Porter.
On November 19, 1816, Augustus Porter made a further notable acquisition
of Niagara property by securing from the State of New York the patent1 of
a certain Island commonly called and known by the name of Goat Island, situate and
lying in the rapids of the Niagara river immediately above and adjoining the Great
Ealls, the northwesterly side of which Island terminates with the perpendicular rock of
precipice forming the Falls, together with several small Islands or masses of rocks
surrounding and appendant to the said principal island but separated from the same
by small sheets of water containing in the whole according to a plan and survey of the
same made by Parkhurst Whitney on the 10th day of October, 1815, and now on file
in the Secretary's office, about sixty-two acres.
It is interesting to note that the deeds conveying the ownership of these lands
and island were executed by
our trusty and well beloved Daniel D. Tompkins, Esquire, Governor of our said State,
General and Commander in Chief of all the Militia, and Admiral of the Navy of the
same, at our City of Albany.
In both deeds
the people of the State of New York, by the grace of God Free and Independent, make
the grant of land excepting and reserving to ourselves all Gold and Silver Mines.
From a point near the head of the island, Augustus Porter constructed a
bridge to the mainland. This bridge proved insufficient to resist the strong
current and heavy masses of ice at that point, and it was partially carried away
the first winter and spring. Within a year another bridge was constructed
across the rapids below, on the site of the present bridge, which has proved
to be a perfectly secure position. For the old bridge of wood a bridge of iron
was substituted in 1856, and this was replaced in 1900 by a multiple-arch
bridge of concrete with stone facing.
In 1822, Augustus Porter erected the large flouring-mill subsequently
owned by Witmer Brothers, and the next year a paper-mill was built by
Jesse Symonds, near Goat Island bridge.
1 A fee of $1.38 for acknowledging and recording this patent is recorded in the memorandum cash hook
of A. Porter.
NIAGARA POWER
In 1826, the upper raceway or canal was extended, and on the extensions,
Ira Cook, William G. Tuttle, Capin & Swallow, and others, erected works
of different kinds. A large paper-mill was built on Bath Island by Porter &
Clark, which was greatly extended by L. C. Woodruff.
What has been called the "upper raceway" upon the earlier maps of the
village of Niagara Falls, is supposed to have been built in 1820, when
Niagara Falls Village
Showing Proposed Hydraulic Canal
Submitted by P. Emslie, December, 1846
the Porter Brothers erected a grist-mill. This canal did not extend towards
the falls nearer than the street leading to the Goat Island bridge. Another
small canal designated as the "lower raceway" was constructed about 184.5
and it is said that a paper-mill, a woolen factory and a nail-mill were built
thereon close to Goat Island bridge. Both raceways were in use in 1884 and
were purchased with all structures thereon by the State in 1885 as a part
of the New York State Reservation at Niagara Falls.
46
PIONEERS IN POWER DEVELOPMENT
RETARDED DEVELOPMENT AND NEW PLANS
A serious interruption to the progress of settlement and improvement at
Niagara, and in all the surrounding country, was occasioned by the War of
1812, which subjected the people to great sacrifices and suffering.
Before1 the village had recovered from the effects of the war, and while the sur-
rounding country, suffering from that and other embarrassments, was making very
slow progress in improvement, at the early period of 1825, the Erie Canal was opened
to its full extent.
The immediate effect was to divert all the business of transportation from the old
channel, and to attract all enterprises and capital seeking employment to the numerous
villages growing up on the line of the canal. Another injurious effect of the canal on
this locality, though beneficial to the new villages, was the very large and widely
extended water-power it afforded, at points where little or none had previously existed,
at Black Rock, Lockport, and other towns west of Rochester, adding greatly to their
growth and proportionally lessening ours.
General Marquis de Lafayette visited Niagara Falls in 1825. In the
account2 of this visit, his secretary, M. La Vasseur, wrote respecting Goat
Island:
The surrounding currents of water offer an incalculable moving power for machinery,
which might be easily applied to all sorts of manufactories.
INVITATIONS TO DEVELOP NIAGARA POWER
In 1825, Augustus Porter and Peter B. Porter issued, as "proprietors of
the lands which embrace the Rapids and Falls, on the American side of the
Niagara; also of Iris (Goat), Bath, and the other small islands lying in the
rapids and connected by bridges with the main shore," an "Invitation to
Eastern Capitalists and Manufacturers" to develop the power at Niagara
Falls, offering to become interested in any such company to the extent of
their means. This appears to have been the first public effort to secure capital
for the utilization of Niagara power by the location of manufactories and a
town at the falls. The "Invitation"3 states that
the inadequacy of capital in this part of the country to undertakings of this kind,
added to the doubts which have until very recently existed in regard to the success of
American manufactures generally, has hitherto prevented the improvements which this
situation so powerfully invites.
It appears from the terms of this "Invitation," that the Porters were plan-
ning to utilize, not the great cataract itself, but only the 60 feet of the upper
rapids, in the three-fourths of a mile of their descent before the river reaches
the falls.
1 Niagara, Past and Present, Albert H. Porter, 1876.
2 Lafayette en Amerique 1824 et 1825, 2 vols., Paris, 1829.
3 Appendix C, Volume I.
47
NIAGARA POWER
The "Invitation" of 1825 does not appear to have been successful in
securing the co-operation of the necessary capitalists nor did the next two
decades witness any material progress in the utilization of the power of
Niagara.
From a Map of the Villages of Niagara Falls and
Niagara City, Dated 1856
A Buffalo publication of 1835 refers to a paper-mill, a flouring-mill, and
a few mechanics' shops as constituting the industrial activity of the village
of Niagara Falls, while two spacious hotels, the Eagle and the Cataract,
afforded accommodations for one hundred permanent guests. A map was
issued in 1846 showing a projected extension of the upper raceway through
48
Augustus Porter,
1769-1849
Pioneer Surveyor, 1789
Power Pioneer of Niagara, 1806
First Judge of Niagara County, 1808
NIAGARA POWER
Canal Street, now Riverway, of the New York State Reservation, and down
the river bank to and beyond the present Pine Street.
In 1845 the inclined plane at the ferry, with cars operated by water-power,
was substituted for the old plan of winding stairs to the river.
HYDRAULIC CANAL
During this long period of stagnation, the Porters did not lose faith in
Niagara. Failing to interest manufacturers in their plan for the utilization of
the 60-foot fall of the rapids above the great cataract, they gave support to a
new plan which has resulted in a development far beyond their hopes or vision.
The new project included the construction of a harbor, with wharf, opposite
Grass Island, near the end of river navigation, and a canal, not for inter-lake
transportation, but a "hydraulic canal," or large raceway, that would conduct a
large volume of water across the point of land enclosed within the right angle
of the turn of the river, to a "reservoir" or canal basin, to be located on the bluff
above the river bank about one-half mile below the falls, where power would be
available from the fall of water from the bank, about 200 feet, to the river below.
Without doubt, Judge Augustus Porter, who owned the lands through
which this canal passed, early saw the importance of its construction and for
several years before his death in 1849, made the most liberal offers to capi-
talists to engage in the undertaking, as the expense involved exceeded his own
means. The interesting account of the development and outcome of this
project is reserved for Chapter IV, entitled "The Hydraulic Canal."
PORTER BROTHERS, PIONEERS
The Porter Brothers were the power pioneers of Niagara. Their large pur-
chases of land on the river bank were an evidence of their vision and courage.
By reason of their activities between the years 1800 and 1850, they were recog-
nized at that period as the most influential and public-spirited citizens of their
community. They firmly believed in the future of Niagara as a manu-
facturing district, and were diligent in making known the water-power poten-
tialities of Niagara Falls. By maintaining portage transportation1 around
the falls from Lake Erie to Lake Ontario, and by establishing industries at
the village, they promoted the settlement and development of that section
of the country. To assist the formation of power companies, they contributed
of their lands and water-rights as a means of obtaining capital from sources
outside of their districts for the development and use of Niagara power. As
is generally the case with pioneers in great industries, they did not live to see
the accomplishment of the undertaking in which their fortune, courage and
enterprise were so fully enlisted.
1 Described more fully in Chapter III.
50
THE "MILE STRIP"
AND
THE PORTAGE LEASE
1803-1805
Chapter III
NIAGARA RIVER
AND VICINITY
Reproduced by permission from
the map issued by the United States Geological Survey
in 1921
SCALE OF MILES
THE "MILE STRIP" AND
THE PORTAGE LEASE
CHAPTER III
HISTORY OF LAND TITLES
THE right to use water in power production is so closely related to land
ownership that the unique history of land titles at Niagara is an im-
portant factor in the history of Niagara power.
The purchase from the state of lands on the river-side was made in con-
fident expectation of acquiring thereby the ownership of the adjoining land
under water and riparian rights to its use, a most important title in estab-
lishing the hydraulic canal upon the real estate donated by the Porter family
to promote this great enterprise.
The purchase of property to be held as the state reservation clouded this
water-right and was only cleared after an appeal to the State Constitutional
Convention and the legislature, the latter ratifying the title, as will be ex-
plained in Chapter XI.
By the Treaty of Paris, 1783, terminating the Revolutionary War between
the United States and Great Britain, the State of New York became the
owner of a strip of land 1 mile wide on the eastern bank of Niagara River,
extending southerly along the river front for about 16 miles, from Lake
Ontario. This land was part of the tract, 4 miles wide on each side of Niagara
River, from Fort Niagara to Fort Schlosser, that England had exacted from
the Seneca Nation in 1764 by the treaty which Sir William Johnson made
with these Indians, as part indemnity for the massacre of English troops and
settlers at "Devil's Hole" on Niagara River, on September 14, 1763.
In a settlement of conflicting claims between the State of New York
and the Commonwealth of Massachusetts, by deed of mutual cession dated
December 16, 1786, the State of New York reserved from its cession to
Massachusetts its title to this land, which became known as the "Mile Strip,"
and was described in the agreement as follows :
Westerly and southerly along said (International) boundary line (in Lake Ontario)
to a meridian which will pass one mile due east from the northern termination of the
Streight (as spelled in the treaty) or waters between Lake Ontario and Lake Erie;
thence south along the said meridian to the south shore of Lake Ontario ; thence on the
easterly side of the said Streight, by a line always one mile distant and parallel to the
said Streight, to Lake Erie.
In 1802, the State of New York acquired by treaty with the Seneca Indians
their title to 20 miles of the lands included in the "Mile Strip" on the eastern
bank of Niagara River, thus completing the state's ownership of all the land
of the "Mile Strip" from Lake Erie to Lake Ontario, about 36 miles.
57
NIAGARA POWER
The New York Legislature, in 1798, directed the Surveyor-General to
survey the "Mile Strip '; to lay out the land in lots, and to provide for a
town site. About the year 1800, a town site 1 mile square was located opposite
Queenstown, and on February 25, 1805, it was named Lewiston by the
commissioners of the land office of the state, in honor of Governor Morgan
Lewis of the State of New York.
SALE OF STATE LANDS
On April 6, 1803, the legislature passed an act directing that all unappro-
priated lands of the state be sold, and removed the inhibition established by
the Act of May 11, 1784, against the grant, by the state as bounty, of the
lands constituting the "Mile Strip."
The commissioners of the land office authorized the Surveyor-General to
advertise and sell all the lots in the village ( Lewiston) laid out on the Niagara
River, opposite Queenstown, located between certain streets, but at not less
than five dollars per lot.
PURCHASERS OF LOTS
A map of the survey made in 1805 by Joseph Annin, deputy surveyor,
under the direction of Simeon de Witt, surveyor-general, was prepared
showing the division of the "Mile Strip" into lots, which were offered for sale
at auction, February 26, 1805. This map is reproduced here, with the official
record of sales of lots contiguous to the falls.
PORTAGE LEASE
The Act of 1803, also authorized the lease of the Niagara portage, between
Lewiston, on the lower river near Lake Ontario and Fort Schlosser on the
upper river, together with the necessary land at each end thereof. The com-
missioners of the land office, on December 17, 1804, announced that proposals
for such a lease would be received until March 12, 1805.
Joseph Annin and Benjamin Barton (signing Jos Annin and Ben Barton)
filed their proposal "for leasing the carrying and landing places on Niagara
River and the Ferry at Queenstown." They offered to erect the stores and
wharves, and to make the other improvements required on the part of the
state for a lease of the premises and privileges for the term of twelve years.
The commissioners of the land office in meeting
proceeded to open the several proposals made for leasing the old Carrying and Landing
places on the Niagara River with the ferry opposite to Queenstown ; and it appearing
to the satisfaction of the Board that the proposals offered by Joseph Annin and
Benjamin Barton were most advantageous to the interests of the State; and they
having offered Peter B. Porter as their security: Thereupon
Resolved, that their proposals be accepted, and their said security approved, and
that the Secretary prepare Leases conformable to their said proposals and to the act
58
SALES OF THE LANDS ALONG THE NIAGARA RIVER, MADE ON FEBRUARY 26, 1805
'. . Purchasers
Barent Sunders
Barent Sanders
Joseph Annin
Alexunder Miller
John McBride
Walter Stewart
Alexander Watson
John McBride
John McBride
Hugh R. Martin for Nuthl Bunell .
Arch'd Mclntyre & John McDonald
Alexander Miller
Joseph Annin
Joseph Annin
Joseph Annin
Alexunder Miller
Alexunder Miller
Benjumin Barton
Benjamin Burton
Benjamin Burton
Arch'd Mclntyre & John McDonald
Arch'd Mclntyre & John McDonald
Benjamin Barton
John Carpenter
Isaac Colt
Alexander Miller
Benjamin Barton
Arch'd Mclntyre & John McDonald
Benjamin Barton
Joseph Alvord
A*"'
Price
Per Acre
No. Lot
183
$ 3.60
31
187
3.60
32
158
3.60
33
155
3.60
34
154
3.60
. 35
158
3.60
36
165
3.60
37
150
3.15
38
142
3.15
39 '
155
2.70
40
174
3.37%
41
167
3.60
42
169
3.60
43
162
4.50
44
160
4.05
45
160
4.05
46
160
4.05
47
160
4.05
48
160
4.05
49
108
4.05
60
159
4.27'/.
61
154
4.27"/.
154
4.05
53
154
3.60
54
151
3.60
55
144
3.60
56
145
3.37'/2
57
148
3.37 •/.
68
156
3.15
59
204
8.15
60
Purchasers
Daniel Steele
Arch'd Mclntyre Si John McDonald
Jacob Mancius
William Low
William Low
Peter B. Porter
Peter B. Porter for Leonard Stevens
Peter B. Porter tor August Porter
Peter B. Porter tor August Porter
Joseph Annin
Joseph Annin
Peter B. Porter It Benjamin Barton
Peter B. Porter & Benjamin Barton
Stedmi;
John Osbo
Isaac Colt
John Osbo
John Osbo
John Osboi
Jacob Gilbert
Jacob Gilbert
James Ernott .
James Ernott .
David Rogers .
Benjamin Bartni
Jacob Gilbert .
Jacob Gilbert .
Jacob Gilbert .
Jacob Gilbert .
Jacob Gilbert .
& Jared' R. Tyler
it Jared It. Tyler
& Jared R. Tyler
it Jared R. Tyler
No.
Per Acre
A'o. Lot
204
3.15
61
212
2.92%
62
197
2.70
63
166
2.92%
64
159
2.92%
65
156
3.37%
66
153
3.37 %
67
161
3.37 %
68
168
3.37%
69
172
3.60
70
182
3.60
71
19
18.00
72
100
13.50
73
681
74
150
1.80
75
160
1.60
76
166
1.80
77
169
1.80
78
164
1.80
79
160
2.25
80
161
2.25
81
161
1.80
82
162
1.80
83
160
1.80
84
161
1.80
85
164
1.80
86
166
1.80
87
162
2.25
88
168
2.25
89
192
2.25
90
Jacob Gilbert
Jacob Gilbert
David Rogers
John McDonald & Arch'd Mclntyn
Jacob Gilbert
Daniel Mallon .......
Daniel Ma
Will
Ernott
Daniel Mallon
Levi H. Palmer
Levi H. Palmer
William Stevens
Beriali Palmer
Beriali Palmer
William Ernott
Matthew Caldwell
John Bird
Alexander Stewart
Matthew Caldwell
Wilbelmus Mynderse
Arch'd Mclntyre & John McDonald
Arch'd Mclntyre & John McDonald
Jacob Gilbert
Arch'd Mclntyr
Arch'd Mclntyr
Benjamin Barton
Arch'd Mclntyre & John McDonald
Arch'd Mclntyre & John McDonald
Archibald Campbell
Arcbibuld Campbell
A'o.
No. Lot
Acres
Per Acre
176
1.80
91
162
1.80
92
165
163
1.80
1.80
93
94
172
1.80
95
194
2.25
96
194
2.25
97
172
2.25
9S
175
2.25
99
196
2.25
100
213
2.25
101
113
1.80
102
180
1.57 %
103
104
210
224
1.57%
1.80
175
1.80
91
.90
.90
61
105
175
1.80
184
1.80
173
2.25
106
98
1.80
155
1.35
224
2.25
107
148
1.80
157
2.25
167
2.25
108 \
157
109 (
157
2.25
110 j
157
2.25
111 I
Purchasers
Benjamin Barton
George Van Slykc
John Randel, Jr
John House
John Barber
John House
Joseph Annin
Constant Woodworth
Sevvall Abbot
John Barber
Thomas Mumford
Benjamin Barton
Arcii'd Mclntyre & John McDonald
John McDonald, Arch'd Mclntyre
Benjamin Barber, Birdsey Norton
& Peter B. Porter
John McDonald, Arch'd Mclntyre
Benjamin Barber, Birdsey Norton
& Peter B. Porter
John McDonald, Arch'd Mclntyre
Benjamin Barber, Birdsey Norton
& Peter B. Porter
John McDonald, Arch'd Mclntyre
Benjamin Barber, Birdsey Norton
& Peter B. Porter
Included in the Village of t
Black Rock S
Price
Per Acre
2.25
2.25
2.25
2.25
2.26
2.25
2.25
2.25
2.25
2.25
2.25
2.25
2.25
5.00
4.50
4.00
4.00
■ An Indian grant, confirmed by the state, and 100 acres sold to Peter B. Porter
A Map of the "Mile Strip"
Lands Along the Niagara River
THE "MILE STRIP"
entitled "An Act for the sale of the unappropriated Lands and for other purposes"
passed the 6th of April, 1803.
The engrossed lease, in duplicate, was approved and the commissioners
executed the same "on behalf of the People of this State," on March 16, 1805.
The firm of Porter, Barton & Company was formed at this time, all four
partners, Augustus Porter, Peter B. Porter, Benjamin Barton and Joseph
Annin being present at the bidding, award and signing of the portage lease,
which was assumed by the new firm.
The land transport was by Indians, by ox-carts and by horse-wagons. The
principal article of commerce was salt in barrels, received from Oswego on
Lake Ontario, to be shipped westward from Buffalo.
PORTER, BARTON & COMPANY, FORWARDERS
Under the authority of the lease, which for all practical purposes was
without competition, Porter, Barton & Company conducted the commerce
of the portage in both directions by land and by water, having their own
vessels, owned or otherwise controlled, on both Lake Erie and Lake Ontario.
This firm established the first line of transportation between New York and
Buffalo, Cleveland, and Pittsburgh, which were distributing points. They,
in effect, issued through bills of lading, and made through rates, being assisted
in this business by their agents at Oswego, Messrs. Walton & Company.
Porter, Barton & Company received freight from New York at Oswego,
on Lake Ontario, where it was loaded on their vessels and carried to Lewiston.
There the freight was transferred to the ox or horse teams and carried over
the portage to Fort Schlosser, about two miles above the Great Falls. It
was there placed aboard their own Durham boats, that were poled by
Indians or others up Niagara River to Black Rock, where the freight was
stored in the warehouses built opposite Squaw Island,2 for shipment in their
own vessels on Lake Erie to its western destinations. The salt shipments
westward amounted to from fifteen thousand to eighteen thousand barrels
annually. It is stated that five thousand barrels of salt were at one time at
Black Rock awaiting vessels to load it for transport west, primarily to
Cleveland.
The charges for transportation, storage and ferriage were quoted as
follows:
Seven shillings per barrel, Lewiston to Black Rock
Three shillings per barrel, Schlosser to Black Rock
1 A fleet of five boats, each carrying 150 barrels of salt.
: Originally known as Scoy-gu-quides Island, near the entrance to the Erie Canal. A gift from the
Seneca Indians to their trusted interpreter. Captain Jasper Parish, who, under the authority of a
confirmatory act of the state legislature in 1816, sold the island in 1823 to Henry F. Penfii-ld.
03
NIAGARA POWER
Six shillings per cwt. and upward for other freight, Lewiston to
Black Rock
For storage twelve cents per barrel
For transportation across the carrying place at the rate of twenty-five
cents for every cwt.
An ox-team hauled twelve barrels, and a two-horse wagon carried seven
barrels of salt.
Ferriage at Queenstown as follows :
Rate in Cents
Man and horse 25
One horse 121/2
One foot passenger 6
Wagon and two horses 75
Additional horse 10
Cart and oxen 75
Cattle per head . 12^
Sheep and hogs .3
Sleigh and horse 75
The War of 1812 seriously interfered with the transportation operations
of this firm. The lease of the portage acquired by the firm of Porter, Barton
& Company expired by its terms at the end of twelve years, on March 16, 1817,
and was extended for four years in recognition of the forced suspension of
the business during the war.
PORTER BROTHERS AS LAND OWNERS AT NIAGARA
In 1825, the Erie Canal was opened for its entire length from Niagara
River, near Squaw Island, at Black Rock (Buffalo) to the Hudson River at
Albany, thus establishing an all-water route to New York City. The effect
of the canal in diverting traffic from the old portage route through Niagara
Falls and its paralyzing influence upon the business prospects have been
recounted in the preceding chapter.
The new transportation route by canal practically terminated the pioneer
business of the Porter Brothers as merchants and forwarders and as owners of
a system of transportation on lakes Erie and Ontario and over the land
portage around the Great Falls. In their portage business they are reported
as having established
the first regular and connected line of forwarders that ever did business from tidewater
to Lake Erie on the American side of the Niagara River,
and of which it has been said it
never wanted in efficiency or in prompt and honorable dealings.
Largely as a result of their own contribution to the westward advance of
the settlement of this country, their portage transit was supplanted by the
Erie Canal and, a few years later, by the growing network of railroads. They
64.
Peter Buet/l Porter
1775-1844
Pioneer Barrister, 1795
Power Pioneer of Niagara, 1806
Land Owner
General Commanding National Force
in War of 1812
Honored by Congress and the State
and City of New York
NIAGARA POWER
had become identified with the settlement of Niagara, where they were the
largest owners of important tracts of real estate favorably located for power
development and manufacturing purposes.
As pioneers in power development the Porter Brothers again devoted their
influences and activities to the upbuilding of Niagara as a center of popula-
tion and commerce. In this new period of their careers the great cataract was
to be again the pivot of their public lives. Its hindrance to commerce had been
the foundation of their business success; they now saw their opportunity in
its vast undeveloped power, which became their hope for the utilization of
their large landed estate, as well as for the community in which they dwelt.
On June 24, 1825, they issued their "Invitation1 to Eastern Capitalists,"
the first of their many efforts, to which reference has already been made in
Chapter II, to enlist aid in this great work.
Peter Buell Porter
1775-1844
By Resolution of Congress, November 3, 1814, a gold medal2 was struck and presented to
Major-General Porter in testimony of the high sense entertained by Congress of his gal-
lantry and good conduct in the battles of 1814: at Chippewa, July 5; Niagara (Lundy's
Lane), July 25; Erie, September 17.
1 Appendix C, Volume I.
2 Stolen ; bronze replica struck for General Porter.
66
THE HYDRAULIC CANAL
1847-1918
THE BEGINNING OF THE ENTERPRISE WHICH
DEVELOPED INTO THE NIAGARA FALLS
HYDRAULIC POWER AND MANU-
FACTURING COMPANY
WHICH CONSOLIDATED WITH
THE NIAGARA FALLS POWER COMPANY (1886)
FORMING
THE NIAGARA FALLS POWER COMPANY mcmxviii
Chapter IV
THE HYDRAULIC CANAL
1847-1918
CHAPTER IV
IN previous chapters, references have been made to the many endeavors
of Judge Augustus Porter to promote the development of the power of
Niagara's falling floods.
JUDGE PORTER'S PROSPECTUS OF 1847
During January, 1847, Judge Porter issued a circular' addressed "To
Capitalists and Manufacturers" offering a canal right-of-way, approximately
three-quarters of a mile long, extending diagonally from the river above the
upper rapids to the edge of the cliff about one-half mile below the falls, to
any persons who would immediately undertake the construction of the canal.
To the circular was attached a map2 by P. Emslie, dated December, 1846,
upon which was located the proposed canal and basin.
While this effort to interest capital did not meet with immediate response,
it undoubtedly stimulated interest in the project and in 1852 the first serious
attempt to progress this plan was made.
WOODHULL PROJECT OF 1852-1853
Caleb S. Woodhull of New York, and Walter Bryant and associates, of
Boston, in 1852, entered into a contract with the heirs of Augustus Porter,
the riparian owners, for the acquisition of the lands necessary for the intake
to the canal on the upper river, the canal and terminal basin. The properties
acquired by the Woodhull associates included: a plot of land, with its
riparian rights, having a frontage of 425 feet on the upper river at the head
of the canal; a right-of-way for the canal, 100 feet in width and approximately
4400 feet in length; and about 45 acres of land at the canal terminus fronting
on the high bank of the river below the falls for nearly 1 mile.
The conveyance of land under this contract included only the lands to the
edge of the high bank of the Niagara River and did not include the talus, or
slope, between the edge of the high bank and the river, and only granted the
right to excavate down the face of the bank 100 feet. These limitations of
ownership were subsequently removed and full rights were acquired under
the Schoellkopf management and ownership of 1877.
This enterprise was incorporated March 19, 1853, under the title of the
Niagara Falls Hydraulic Company, popularly termed the "Woodhull
Project." The objects of the company were stated to be "for the purpose of
carrying on and conducting manufacturing, chemical and mechanical business
1 Appendix C, Volume I.
2 Chapter II, page 46.
69
NIAGARA POWER
1857
First Waters from the Hydraulic Canal Falling over the
"High Bank," Unutilized
at the village of Niagara Falls by means of water-power drawn from the
Niagara River immediately above the falls," and for the construction of a
navigable hydraulic canal with its gates, bridges, wharves and other appur-
tenances. A printed prospectus, in pamphlet form, with two maps, was issued
bearing the date of 1853.
The board of trustees comprised :
Walter Bryant Caleb S. Woodhull Stephen M. Allen
Daniel Badger Alfred Ashfield William Cockcraft
Abram Wakeman
and the officers were :
President : Caleb S. Woodhull,1 of New York City
Secretary : Ezra S. King
Agent: Walter Bryant, of Boston
Chief Engineer: Charles Whitney
1 Mayor of the city of New York, 1849-1850.
70
THE HYDRAULIC CANAL
1875
First Utilization of the Hydraulic Canal Falling over the "High Bank," by the
Gaskill Flouring Mill, Using only 25 Feet of the 210 Feet Available
The entire capital of $500,000 was paid in, according to the evidence said
to have been duly filed with the clerk of Niagara County. A certificate issued
for shares, showing the signatures of the president and secretary, is shown
on page G8.
An issue of $200,000 5-year seven per cent convertible bonds was made in
November, 1853, in the denomination of $500, "secured by a first mortgage
on the Niagara Falls Hydraulic Canal and the lands, appendages and appur-
tenances thereunto belonging," upon the condition that no other bonds should
be issued until after all this issue of bonds had been paid and cancelled.
The bonds were certified by Thomas McElrath, trustee of the mortgage.
71
NIAGARA POWER
1893
Manufactories of the Lower Milling District on the "High Bank" Served by the
Hydraulic Canal, No Wheel Using the Full Head
1 Central Milling Company
2 Niagara Wood Paper Company
3 Schoellkopf $ Mathews Flour Mill
4 Pettebone Pulp Mill
5 Charles B. Oaskill Flouring Mill
6 Niagara Falls City Water Works
7 Cliff Paper Company (first use of water,
75 ft. head)
8 Cliff Paper Company, Lower Mill (second
use of water, 125 ft. head )
9 Oneida Community Mill
Stephen M. Allen1 at this time took a financial interest in the undertaking,
which he had declined six years before, becoming one of the original party
of four who commenced excavations. Ground was broken in 1853 and the
1 Stephen M. Allen, self-described as an "old-fashioned engineer," of Boston, was acquainted with the
Porter family and was familiar with the primitive methods of using water-power at Niagara by wooden
overshot wheels in a loop canal, or raceway, paralleling the river along the upper rapids, and operating
under very low heads. From 183.5, Mr. Allen had experience in the utilization of water-power by manu-
facturers and in the building of mills, machinery and canals. In 1847, he submitted to Judge Porter a
sketch plan for the hydraulic canal project embodying the wheel-pit development of power. In 1884
Mr. Allen stated, "Judge Porter made me a proposition to give me the canal and certain lands if I
would build it, which I declined."
72
THE HYDRAULIC CANAL
1926
The Great Schoellkopf Electrical Power-plant at the Foot of the
"High Bank" of The Niagara Falls Power Company Sending
Power to Hundreds of Thousands of Users
work of excavation was carried on for about sixteen months, when it was
suspended for lack of funds.
The plan of power development was described as a hydraulic canal 70 feet
in width and 10 feet in depth, commencing on the Niagara River about half a
mile above the rapids, and extending 4500 feet to a point on the bluff, about
one-fourth of a mile below the falls, to its terminal in a basin, from which the
waters discharged over a perpendicular bank about 210 feet high. The
property rights acquired comprised ( 1 ) about 80 acres on the level plain or
plateau below the falls, for manufacturing sites, extending about 1 mile on
and along the high bank of the river, (2) 1100 feet of water front for wharf
purposes, above the falls, opposite Grass Island, and (3) a strip of land 100
feet wide for the canal, the whole situated within the limits of the village of
Niagara Falls, as will be seen by reference to the map on page 46. "All these
lands," it was claimed, "including their water-privileges and other advantages,
together with the exclusive right to construct the proposed canal, were
73
NIAGARA POWER
purchased by the company for the sum of $550,000, and are now absolutely
owned by them." The Porter families are understood to have granted much of
the right-of-way for the canal.
The excavation for the canal in limestone rock and the advantages of the
canal in overcoming the danger from anchor ice were mentioned as features
of the plan.
The population of the village of Niagara Falls in 1853 was probably less
than 2000, and there were but few structures on the line of the canal, as it was
located inland from the improvements that were then established near the
river, in view of the rapids of the falls.
Charles H. Bigelow, chief engineer of the hydraulic works at Lawrence,
Massachusetts, described in 1853 several patterns of water-wheels that he
thought useful in developing the power at the manufacturing sites on the
bluff. "More especially the turbine," he wrote, "is admirably adapted to this
object; a wheel of this kind, which is about 13 inches in diameter, is now work-
ing in France under a fall of 354 feet and driving a factory of 8000 spindles."
ADVANTAGES OF NIAGARA POWER PROSPECTUS OE 1853
The prospectus of 1853 called attention to the following as some of the ad-
vantages of the location :
1. No less than six railroads, all centering at this point, are now (1853) completed or
in course of construction.
2. A commodious harbor may easily be made at the entrance of the projected canal ; as
a reef of rocks, over which there is only 3 feet depth of water, stretches out from
the river bank just below that point, to an island (Grass) directly opposite
extending some distance above it, therewith forming a natural barrier, which,
at no great expense, may be rendered a complete breakwater. The wharves of
the company will thus become safely accessible from Buffalo by vessels of the
largest class ; and canal boats, passing through the canal into the basin, will
receive and discharge their freights at the very doors of the factories.
3. The proximity of the city of Buffalo is of itself sufficient to secure to it (Niagara)
inestimable advantages as a manufacturing center.
4. Its attractiveness as a watering place will continue undiminished ; for the proposed
situation of the factories is such as to preclude the possibility of their detract-
ing in the least from the grandeur of the cataract.
5. The celebrity which now attaches to the place, as the possessor of the sublimest of
nature's works, will not be lessened when it shall be one of the great workshops
of the world, sending forth daily the wonderful creations of human industry
and skill.
This company did not meet with success. The cost of construction largely
exceeded the estimates, and the capital available was insufficient to carry the
construction to the production of income.
74
THE HYDRAULIC CANAL
DAY PROJECT OF 1856
In 1856, the name of the company was changed to Niagara Falls Water
Power Company and the following named directors and officers were elected:
Directors
Stephen M. Allen James S. Greene John Fisk
Horace H. Day Alexander Hay Parkhurst Whitney
James Waldron
Officers
President: Stephen M. Allen
Vice-president and Treasurer : Horace H. Day
Superintendent: Alexander Hay
Hydraulic Engineer: L. M. Wright
This company, known as the "Day Company" under its new owners and
management, acquired a moderate amount of additional capital, provided
by Stephen M. Allen, who took full charge of the construction work until
about 1860, when the control of the company was purchased by Horace H.
Day. The entrance and river portions of the canal were completed in the
spring of 1857. This condition was celebrated on July 4, 1857, as the "occasion
of the opening of navigation to Niagara Falls," when three steamers, the
pioneers in opening steam navigation from Lake Erie to Niagara Falls, came
in procession to the mouth of the canal, then and now called Port Day. Water
was allowed to pass through the canal for the first time on that day. The ex-
cavations permitting, commercial use was inaugurated the following year on
the 4th of July, 1858, but the canal, as then projected, was not completed
until 1862. 1Q-A
DAY PROJECT OF 1860
Since the company was unable to raise the additional money after the ex-
penditure, it was reported, of nearly $300,000 in the work on the canal, the
property was sold in 1860 to Horace H. Day, who reorganized the company
under the title of Niagara Falls Canal Company and raised considerable
money, which was expended mainly in blasting the rock for what is now known
as the hydraulic canal from Port Day.
During the succeeding seventeen years, Mr. Day and his associates con-
tinued, from time to time, the excavation of the canal, and it was claimed in
the spring of 1877 that the canal had been completed 1 mile long, cut through
rock, with a capacity of about 27,000 horse-power. To carry the enterprise
to this point, the owners had been obliged to borrow money and to secure the
same by mortgage upon the property. In addition to the lands, water-rights
75
NIAGARA POWER
and mill-sites contributed by the Porter heirs, the total cash capital provided
for construction work, in the water-power development from Port Day, by
canal to the basin and mill-sites below the falls, between the years 1853 and
1876, has been estimated at more than $800,000 by successive promoters who
failed in their efforts because of inability to provide the capital required for
the completion of their respective undertakings, as well as lack of demand for
hydraulic power for manufacturing uses.
Mr. Day stated that he had made every effort to protect the company's
credit and had expended his entire fortune on the project. He had, however,
been unable to raise any more money. The company had exhausted its re-
sources and credit before the canal could be sufficiently extended to justify
lessees in the construction of manufactories.
SCHOELLKOPF PURCHASE OF 1877
The company having failed to meet the interest maturing upon its bonds,
its mortgage was foreclosed and its entire property sold at auction, May 1,
1877, for $71,000, the purchaser being Jacob F. Schoellkopf , and associates, of
Buffalo. In a settlement of accounts with Mr. Day, a further payment of
$5000 was made, making the total cost of the property to the purchasers,
$76,000. This property consisted of the inlet from the Niagara River, called
Port Day, the unfinished canal and the water-rights pertaining thereto, and
about 45 acres of land on the cliff that have since been largely utilized for the
canals and forebays of the manufacturing properties constructed there and
operated by the water-power.
Much satisfaction was expressed by citizens of the village of Niagara Falls
at the purchase of this hydraulic property by Mr. Schoellkopf, who was recog-
nized as a progressive and successful merchant and manufacturer of Buffalo.
As practical business men, he and his subsequent associates, with the courage
of their convictions and the means to develop the power and the community
of Niagara as they conceived it possible and profitable, were hailed as a favor-
able omen of progress and success for Niagara power. An old property owner
declared when the sale was announced, "Now we can add a hundred dollars
to the price of every lot."
GASKILL FLOURING MILL OF 1875
Prior to the purchase of the canal properties by the Schoellkopf associates,
the first and only use that had been made of this water-power was in the flour-
ing mill established in 1875 by Charles B. Gaskill. This was the first mill built
upon the hydraulic canal basin, on the high bank below the falls.
76
THE HYDRAULIC CANAL
It should be remembered that the early developments upon the hydraulic
canal basin at Niagara Falls were begun before the engineers and the manu-
facturers dared to design and to build water-wheels for use under such high
heads as were here available. Therefore, shafts, or pits, were sunk only to such
depths, into the rock near the edge of the cliff, as were considered safe for the
operation of the water-wheels then made. Turbines were first built of wood,
later of wood and sheet iron, and still later bronze and steel were utilized.
The Gaskill mill employed a head of but 25 feet, thus utilizing less than one-
eighth of the potential energy of the falling water from the upper to the lower
river levels. Water was brought from the canal basin first through wooden
flumes, later through iron tubes, to the turbines located at the bottom of the
shafts. After passing through the wheel, the water escaped through short tail-
race tunnels which discharged from the face of the cliff into the gorge below.
Reference to the illustration on page 71 will indicate how inefficiently these
early developments used water, in the light of present-day knowledge and
practise.
PROSPECTUS OF NIAGARA FALLS CANAL COMPANY
The new proprietors about this time issued an undated prospectus1 headed
"Niagara Falls Canal Company" and bearing the names of J. F. Schoellkopf,
A. M. Chesbrough, Stephen M. Allen and Miles Standish and offering for
sale on reasonable and accommodating terms one hundred mill and factory
sites and three hundred cottage lots. The description of the canal contained
in this circular indicated the size and capacity of the canal then to be at its
mouth 66 feet in width and 11 feet in depth. The average width of the main
section of the canal was given as 22 feet, and the average depth as 10 feet.
Reference was made in detail to the facilities for the transportation of
freight both by land and water, to the remarkably low taxation, and to the
costs of living that were less at Niagara than in most manufacturing districts.
The sites for manufacturing, it was stated,
will be sold low according to location and size and the water at one thousand dollars per
square foot of open weir surface at the head of the canal and the opening in the gates
below to correspond in size to the square of water purchased.
It was estimated that a square foot of water at the entrance of the canal, which
would be one six hundred and sixtieth part of the whole inflow of water, with
a velocity of 2y2 feet per second, would give 41.67 horse-power, "a much more
liberal estimate for loss of power upon water-wheels than is generally
allowed," so the prospectus claimed.
1 Appendix C, Volume I.
77
NIAGARA POWER
SCHOELLKOPF COMPANY OF 1878
A new company was incorporated by Mr. Schoellkopf in 1878 under the
Business Corporation Law (Chapter 611) of 1875, under the name of The
Niagara Falls Hydraulic Power and Manufacturing Company. This com-
pany acquired the canal property.
In this corporation Mr. Schoellkopf associated with himself George B.
Mathews, of Buffalo, with whom Mr. Schoellkopf had been associated in the
milling business, and also his son, Arthur Schoellkopf, who took up his resi-
dence in Niagara Falls and became the active manager of the hydraulic
property, in which capacity he continued to act until his death in 1913.
SCHOELLKOPF AND MATHEWS FLOURING MILL
Following the acquisition of the property by The Niagara Falls Hydraulic
Power and Manufacturing Company, the canal was improved and enlarged
from time to time. The development of the property was inaugurated by the
prompt erection by the firm of Schoellkopf and Mathews, between the canal
and the top of the cliff, of a large flouring mill having a capacity of 1200
barrels of flour a day, and operated by 22 run of stones until 1881, when
power for rollers was obtained from two "American" cast-iron turbine wheels
producing 900 horse-power under a 50-foot head of water that was discharged
down the bank 150 feet to the river below. The Schoellkopf and Mathews
mill was shortly afterwards followed by another flouring mill constructed
northerly of the other mill by substantially the same Schoellkopf interests,
but under the name of Central Milling Company, using the water under a
head of 80 feet.
The paper industry was the next manufacturing interest to utilize the canal
water as its source of power. This naturally attracted and promoted the loca-
tion of wood pulp factories and the manufacture of paper products.
THE HYDRAULIC CANAL COMPANY OF 1882
Under the stimulating example of Jacob F. Schoellkopf and his associates,
other industries availed of the water-power of The Niagara Falls Hydraulic
Power and Manufacturing Company, known as the "Schoellkopf" or "hy-
draulic" company.
The officers of this company in 1882 were:
President : Jacob F. Schoellkopf
Vice-president : William D. Olmsted
Secretary and Treasurer: Arthur Schoellkopf
78
THE HYDRAULIC CANAL
The directors, in addition to these officers, were:
George B. Mathews
James Frazer Gluck
In 1882, the following named industries were using power furnished by the
"hydraulic" company:
Title Industry Horse-power
Charles B. Gaskill Flour Mill 100
Schoellkopf and Mathews Flour Mill 900
Niagara Wood Paper Company Pulp Mill 300
Cataract Manufacturing Company Pulp Mill 1000
J. F. Quigley Pulp Mill 250
Oneida Community, Ltd. Silver Plating 150
Suspension Bridge Village Water Works 25
Total power 2725 h-p.
THE SCHOELLKOPF COMPANIES
Some time after this period the company announced its progress as follows:
^Ve are furnishing over 8000 horse-power.
We have just completed the enlargement of our hydraulic canal, cut through solid
rock, and we are now ready to furnish 40,000 horse-power under a head of from 100 to
200 feet. Without question this power will be constant and reliable in every way.
We call your special attention to our latest development of power at the Cliff Paper
Mill, using the water a second time under a head of 120 feet, and invite inspection.
In the examination in 1881 of titles and values of the property and rights
about to be acquired by the State of New York for its Niagara reservation,
the commissioners of appraisement held that "Niagara River' is a public
stream and its bed and waters belong to the State." The question of the com-
pany's riparian rights against the state was brought, in 1894, before the New
York State Constitutional Convention. In 1895, the Attorney-General of
the state rendered an opinion to the commissioners of the Niagara State
Reservation adverse to the contentions of the company in respect to the right
of the state to interfere with or prohibit the company's use of water.
By an act of the legislature of the State of New York, Chapter 968, laws
of 1896, the right of the company
to take, draw, use and lease and sell to others to use the waters of Niagara River for
domestic, municipal, manufacturing, fire and sanitary purposes, and to develop power
therefrom
was recognized, declared and confirmed.
For the first time the power of the Great Falls was successfully utilized,
the manufacturing enterprises and the "hydraulic" company were profitable,
1 See Chapter VI, "State Reservation at Niagara."
79
NIAGARA POWER
the population of the village of Niagara Falls increased and its prospects
were recognized as attractive, as an industrial as well as a scenic center.
SUCCESSFUL USE OF THE HYDRAULIC CANAL
In 1881, the first hydro-electric generating station was established on the
hydraulic basin to supply electricity for commercial purposes. This station
was located in what was then known as Quigley's Mill, later the Cliff Paper
Comj>any's Mill. In this station there were installed water-wheels operating
under a head of about 86 feet. These wheels operated the paper mill, several
small factories and an arc light machine owned by the Brush Electric Light
and Power Company, which concern had been organized in November, 1881,
by Jacob P. Schoellkopf, George B. Mathews, W. D. Olmsted, Arthur
Schoellkopf and Benjamin Rhodes. The December 14, 1881, issue of the
Gazette, Niagara Falls' weekly newspaper, said:
No sooner was the announcement made through the columns of the Gazette that an
electric light company had been formed in the village for the purpose of supplying our
stores and manufacturers with light, than applications began to pour in, and the com-
pany has been busy filling the orders. This evening (Wednesday, December 14, 1881), the
company will furnish light for the Schoellkopf and Mathews grist-mill, J. Quigley's pulp
mill, Oneida Community Building, Marr & Duff's dry goods store, H. E. Griffith's drug
store, S. Hirsch's dry goods store, and the Gazette office.
The first arc-light machine installed in this electrical development weighed
2250 pounds and delivered sufficient electricity to operate sixteen 2000 candle-
power open arc lamps which were used to furnish street and store service.
This use of hydraulic power, converted into electric light, was the first public
distribution of electricity at Niagara Falls, and it stimulated interest in the
development of power in general at Niagara.
In 1886, The Niagara Falls Hydraulic Power and Manufacturing Com-
pany secured a deed for the slope or strip of land between the high bank and
the lower river, that was not included in the original grants acquired from the
Porter family. The value of this strip for every purpose in the development
and use of power was thus early recognized.
MILLING DISTRICT OF 1893
By an examination of the view of the "Milling District," in 1893, on page 72,
it will be noticed that in no instance was the power fully utilized, or even half
used, as the available fall was about 210 feet, while the water-wheels were in-
stalled at a comparatively short distance down the cliff, the earliest of iron,
at 25 and 50 feet, and subsequent wheels, of iron and bronze, under greater
heads.
80
THE HYDRAULIC CANAL
THE SCHOELLKOPF POWER STATIONS
FULL HEAD IN USE, 210 FEET FROM CLIFF TO GORGE
During 1895 and 1896 The Niagara Falls Hydraulic Power and Manu-
facturing Company constructed its Power Station Number Two' at the
water's edge in the gorge, designed to use water under the full available head
of 210 feet. In the first section of this station were installed four double dis-
charge turbines, built by James Leffel & Company, of Springfield, Ohio.
These four turbines had a total capacity of 6850 horse-power, and were sup-
plied with water through an 8-foot diameter steel penstock extending from
the forebay at the top of the cliff to the power-house below.
The first section of the full head development proved so successful that two
more sections were immediately added, making a station 170 feet long by 100
feet wide, of fire-proof construction being built entirely of stone and steel.
The equipment of the completed station consisted of fifteen turbines, the
capacities of fourteen of them ranging from 1600 to 3500 horse-power, the
combined output capacity being 34,000 horse-power. The turbines of the two
sections of Power Station Number Two last built received their supply of
water through steel penstocks 11 feet in diameter. In respect to the power
capacity, these penstocks were then the largest in the world.
In the light of present central station practise, it is interesting to review in
brief detail the installations made in Hydraulic Station Number Two.
Not only was it possible in this station to utilize the full effective drop of 210
feet between the head of the upper rapids and the Maid-of-the-Mist pool below
the cataracts, but it was also possible to use horizontal shafts directly connect-
ing turbines and generators which practically eliminated all bearing troubles.
To each turbine was attached two or more generators. The Pittsburgh
Reduction Company (now the Aluminum Company of America) received
the output of six 560-kilowatt, eight 750-kilowatt and four 1000-kilowatt
generators, delivering direct current at 300 volts. These eighteen generators
were all of Westinghouse design and manufacture, and aggregated 13,360
kilowatts or about 18,000 horse-power.
The National Electrolytic Company, engaged in the electrolytic manufac-
ture of chlorate of potash, 2500 horse-power, taking the output of one 200-kilo-
watt, 135-volt, direct-current, and two 875-kilowatt, 175-volt, direct-current
generators; all designed and produced by the General Electric Company.
The Acker Process Company utilized an aggregate of 3800 electrical horse-
power delivered in the form of direct current at 325 volts by three 1000-
kilowatt, 3100 ampere, General Electric generators.
1 Since abandoned.
81
NIAGARA POWER
One turbine drove two 560-kilowatt, 550-volt, direct-current generators of
General Electric make. One of these generators carried a commercial load,
supplying current to about fifty small users of power. The other generator
carried a railway load, for the operation of the Niagara Gorge Railroad.1 A
booster with a range of 300 amperes was attached, and in circuit with the
Youngstown and Lewiston electric railroad 14 miles distant from the power-
house.
Two 1000-kilowatt, 11,000-volt, 3-phase alternators, manufactured by the
Bullock Manufacturing Company, supplied 25-cycle current for transmis-
sion to customers located at various distances up to 2 miles. One 700-kilowatt,
2200-volt, single-phase alternator made by the Walker Manufacturing Com-
pany was operated for the Buffalo and Niagara Falls Electric Light and
Power Company which company was the distributing agent of Niagara
power for commercial and municipal lighting in the city of Niagara Falls.
It is interesting now to note that of the total capacity of Hydraulic Station
Number Two, amounting to 34,000 horse-power, approximately 90 per cent
was used for generating direct current, and but 10 per cent for alternating
current. Today, the ratio is reversed, slightly more than 90 per cent of the
system output being alternating current.
The "hydraulic" company began the building of its Station Number Three- A
in 1903 and completed it in 1913. The equipment consisted of thirteen double-
runner, 300 r.p.m., 10.000 horse-power turbines and two single-runner, 500
r.p.m., 1000 horse-power turbines, all horizontal shafts, furnishing mechan-
ical energy for the operation of generators. These turbines all operated under
an effective head of 210 feet. The electrical equipment of this station was
made up of eight 8000-kilowatt, 12,000-volt, 3-phase, 25-cycle; two 1000-
kilowatt, 2200-volt, 3-phase, 25-cycle; and ten 3500-kilowatt, 550-volt
direct-current generators. The ten direct-current generators were connected
to five water-wheel shafts, two generators to one shaft. The total rated in-
stalled capacity of Station Number Three-A was 132,000 horse-power.2
THE SCHOELLKOPF PIONEER
Jacob Frederick Schoellkopf located his home and business in Buffalo in
1844, where as a leather manufacturer he became one of the successful men of
that community. After his purchase in 1877 of the hydraulic canal at Niagara
Falls, and the transfer of the canal property to The Niagara Falls Hydraulic
1 The Niagara Gorge Railroad was purchased by The Niagara Falls Power Company during January,
1925.
2 For table showing installed rated capacity of later Schoellkopf installations, see Appendix P,
Volume II.
82
Jacob Frederick Schoellkopf
Born in Kirchheim, Germany
November 15, 1819
Died in Buffalo, N. Y.
September 15, 1899
Founder in 1877 of
The Niagara Falls Hydraulic Power and
Manufacturing Company
Whose Foresight and Courage Laid
the Foundation for the Power Development
at Niagara Falls
NIAGARA POWER
Power and Manufacturing Company in 1878, he became its president, an
office he held until his death, September 15, 1899.
His life was one of industry, courage and patience, and his enterprises
testified to his forethought. He succeeded where others had failed.
The industries he established in the utilization of the waters of Niagara con-
stitute a monument to his leadership and influence in the upbuilding of the
city of Niagara Falls, and in the commerce of that community.
His will expresses his confidence in the future of the hydraulic company
by the provision that the interests he bequeathed should not be sold for a
period of years after his death.
Upon Mr. Schoellkopf 's death in 1899, George B. Mathews of Buffalo
became president of the hydraulic company, and Arthur Schoellkopf, of
Niagara Falls, continued as the active manager of the property. The suc-
cessful development of the properties of the company continuously pro-
gressed under the guidance of Mr. Mathews and Mr. Schoellkopf, until the
death of Arthur Schoellkopf in 1913 and the retirement of Mr. Mathews in
1914. Thereafter the management of the property devolved upon several
members of the family of Jacob F. Schoellkopf, Sr. Among those most active
therein were Jacob F. Schoellkopf (his son), the present chairman of the
board of directors of the consolidated company; Paul A. Schoellkopf, the
present president of the consolidated company, son of Arthur Schoellkopf,
and grandson of the first Jacob F. Schoellkopf; and Alfred H. Schoellkopf,
vice-president of the consolidated company, another grandson of the first
Jacob F. Schoellkopf, and the son of C. P. Hugo Schoellkopf, who has also
for many years been active in the affairs of the hydraulic company and the
consolidated company.
84
THE HYDRAULIC CANAL
SUMMARY OF OWNERSHIPS
1853-1918
The project of a short hydraulic canal to a forebay on the bluff proposed
by Stephen M. Allen in 1847 to Judge Augustus Porter, passed into the
ownership of various companies under the following successive titles :
1853 — Niagara Falls Hydraulic Company
known as the "Woodhull project."
1856 — Niagara Falls Water Power Company
known as the "Day" company.
1860 — Niagara Falls Canal Company
known as the "Day" company.
1878 — The Niagara Falls Hydraulic Power and Manufacturing Company
known as the "hydraulic" canal,
or "Schoellkopf" company.
1909-1910 — Hydraulic Power Company of Niagara Falls
Cliff Electrical Distributing Company
known as the "Schoellkopf" companies.
1918 — The Niagara Falls Power Company, mcmxviii
known as the "consolidated" company, under the control and manage-
ment of the Schoellkopf family and their associates.
85
JACOB F. SCHOELLKOPF, I
ARTHUR SCHOELLKOPF 1819-1899 JACOB F. SCHOELLKOPF, II
1856-1913 '
PAUL A. SCHOELLKOPF
JACOB F. SCHOELLKOPF,III
ALFRED H. SCHOELLKOPF C. P. HUGO SCHOELLKOPF
THREE GENERATIONS OF THE SCHOELLKOPF FAMILY
For three generations the Schoellkopf family have
been engaged in power development at Niagara
Falls, the first Jacob F. Schoellkopf having
founded The Niagara Falls Hydraulic Power and
Manufacturing Company in 1877, and having con-
tinued as president of this company and its suc-
cessor, the Hydraulic Power Company of Niagara
Falls, until his death in 1899. The record of his
sons and grandsons follows: Jacob F. Schoellkopf,
II, son of Jacob F., I, president, Hydraulic Power
Company of Niagara Falls, 1914 to 1918 ; chairman,
board of directors of The Niagara Falls Power
Company, 1918 to date; chairman, board of di-
rectors of Buffalo, Niagara and Eastern Power
Corporation, 1925 to date; Jacob F. Schoellkopf,
III, son of Jacob F., II, director of The Niagara
Falls Power Company, 1918 to date; director,
Buffalo, Niagara and Eastern Power Corporation,
1925 to date; Arthur Schoellkopf, son of Jacob
F., I, secretary and treasurer, The Niagara Falls
Hydraulic Power and Manufacturing Company,
and its successor, the Hydraulic Power Company
of Niagara Falls, 1877 to 1913; Paul A. Schoell-
kopf, son of Arthur, vice-president, Hydraulic
Power Company of Niagara Falls, 1913-1918;
president, The Niagara Falls Power Company, 1919
to date; president, Buffalo, Niagara and Eastern
Power Corporation, 1925 to date; C. P. Hugo
Schoellkopf, son of Jacob F., I, vice-president, The
Niagara Falls Power Company, 1918 to 1926; vice-
chairman, board of directors, The Niagara Falls
Power Company, 1926 to date; director, Buffalo,
Niagara and Eastern Power Corporation, 1925 to
date; Alfred H. Schoellkopf, son of C. P. Hugo,
vice-president, The Niagara Falls Power Company,
1920-1926; vice-president and general manager,
Buffalo, Niagara and Eastern Power Corporation,
1925 to date.
86
PROJECTS THAT FAILED
TO MATERIALIZE
Chapter V
PROJECTS THAT FAILED
TO MATERIALIZE
CHAPTER V
UP to this point, the course of Niagara's material advance has been
followed as it would have revealed itself to a visitor returning to the great
cataract from time to time through the century following the American
Revolution.
Petty uses of power by a few individual mills located on the raceway loops,
upon the river bank above and near the falls, satisfied their meager require-
ments from the waters of the upper rapids, as if from an ordinary river,
without drawing upon the vast abundance of the Great Falls.
The lack of financial resources was indicated by the slow progress of the
"hydraulic" canal, built in portions, under the administration of four suc-
cessive companies, three upon the wrecks of the fortunes of their predecessors.
The inauguration of a new period of local prosperity was stimulated by the
so-called completion of the canal, which made available the entire head of the
falls for such use as the manufacturer could make of it.
These were the developments that had actually stamped themselves upon
the landscape of Niagara.
In order to gain a true perspective of the Niagara problem, it may be
helpful to take account also of several futile projects which were brought
forth during that period for the utilization of the waters of the river, and to
consider the reasons why they did not come to a successful issue.
TRANSPORTATION PROJECTS
From the time of the first voyageurs, the falls had always been a great
obstacle upon the main trade-route to the West. The increase of commerce
between Lake Ontario and Lake Erie, on its way between the East and the
growing West, and the necessity of using the Niagara portage, prompted
consideration of the means whereby the portage around the falls and rapids
might be avoided and such transportation cheapened and quickened by the
use of a barge canal to be constructed.
NIAGARA CANAL COMPANY OF 1789
The earliest of these projects had for their chief object an effective means
of water transportation between the Great Lakes, with the development of
power as merely incidental to this purpose.
Appeals were made to the state legislature for relief. Upon representa-
tion that the route was feasible and "would tend greatly to facilitate and
advance the internal commerce of this state and promote the convenience and
80
NIAGARA POWER
prosperity of the people thereof," a charter was granted April 5, 1789, to the
Niagara Canal Company with authority to construct a canal beginning at or
near Steadman's landing, about 2 miles above the falls of Niagara, to a
convenient place below the falls, at Lewiston, opposite Queenstown, a distance
of about 7 miles, with all locks, dams, works and devices necessary for "com-
plete navigable water communication" between the said places; also "to take
the water from the channel for mills and other hydraulic works which may be
erected or constructed by the company and to lease the use of the water for
any lawful purpose."
The company was further authorized to condemn land and to use so much
of the land belonging to the people of the State of New York as might be
necessary for canal and locks and also 100 feet in width on each side of the
said canal for towing paths, and other incidental purposes.
This is the first reference in state legislation to the use of the waters of the
Niagara River. The primary object, it will be noted, was navigation, the
development of power being merely incidental.
By the terms of its charter the company was required to complete the canal
and locks by January 1, 1809. It does not appear that this undertaking ever
reached the stage of actual construction ; and from the fact that the same name,
Niagara Canal Company, was given to a new corporation under a legislative
act of April 11, 1823, it may be inferred that the charter of the old company
expired by default.
NIAGARA CANAL COMPANY OF 1823
Authority to build a canal was granted for the purpose of opening naviga-
tion from above the falls, beginning at or near the mouth of Gill Creek in the
town of Niagara, to the heights overlooking Lewiston, and to construct a rail-
way from there to the navigable water of the Niagara River nearly opposite
Queenstown. The company was also authorized
to take the surplus water which shall be contained in any lock, bay, pond, or embankment,
or other improvement made by the said company, and make use of the same .... for
mills or any other hydraulic works which may be erected or constructed by the company.
To enter upon, possess, and occupy any lands near the north termination of said canal
and railway, either on the side of the mountain or stony flat below, that shall be neces-
sary to erect mills for any hydraulic works, with full power to make all dykes, ponds,
embankments, raceways, tail-races, roads, bridges and gates.
The company was authorized to impose a toll for the use of navigation not
exceeding
fifty cents per ton for all property carried on the canal through the whole distance
thereof.
90
PROJECTS THAT FAILED TO MATERIALIZE
It was also enacted that the legislature might
dissolve the company, when the income arising from the said tolls shall have fully com-
pensated the said company for all necessary expenditures, together with an interest
of fourteen per cent per annum,
and
in case the said company shall fail or neglect to complete the said canal, .... within
ten years from the passing of this act, then and from thenceforth all and every right,
privilege and immunity granted and secured by this act, shall cease and terminate.
Bates Cook, Robert Fleming, William Hotchkiss, Ames S. Tryon and
Rufus Spalding were appointed commissioners to offer publicly for subscrip-
tion the capital stock authorized, not exceeding $120,000, in shares of twenty
dollars each, payable at par as the commissioners might prescribe, in labor
on the canal, in materials, in provisions, or in money.
By comparing the charters of 1789 and 1823 it will be observed that the
earlier grant was for a complete navigable water communication by canal
with locks and dams, from Steadman's landing to a convenient place below
the falls opposite Queenstown. The Act of 1823 authorized a company with
the same name to build a canal, for the purposes of opening navigation from
Gill Creek above the falls and near Steadman's landing, to the heights near
Lewiston. In the latter case, no dams and locks were authorized or appar-
ently contemplated, to extend the navigation down to the level of the lower
Niagara River. It is evident that locks to overcome the difference in eleva-
tion of 316 feet between the water level of the upper river and the river below
the falls near Queenstown, the port of Lake Ontario, had been found im-
practicable, and the remainder of the portage was expected to be accomplished
by a transfer by railway of merchandise and passengers from boats in the
canal terminus at the bluff overlooking Lewiston, to the navigable water of
the Niagara River nearly opposite Queenstown.
This act also provided that if the canal authorized was not completed within
ten years, all the rights granted should cease. There is no evidence that any
serious work was done on the canal or railroad. As the canal route would have
required rock excavation for its entire length of approximately 6 miles, the
construction project was as impracticable an undertaking as that of the Act
of 1789, excepting that a railway was authorized instead of locks to overcome
the difference of elevation between the terminals. It may be observed that
the provision for a railway in the Act of 1823 antedates by several years the
commercial advent of the locomotive in America.
These charters granted by the State of New York for the development,
primarily, of water transportation, and, incidentally, of power, had not offered
91
NIAGARA POWER
sufficient inducement to secure the necessary investment of capital. No work
was performed under them. It may be concluded that in each case the esti-
mated cost of excavating such a canal through 6 miles of solid rock proved
discouraging, and led to the abandonment of the undertakings. It would
not pay.
OTHER SHIP CANAL PROJECTS
Several national projects were seriously considered for a ship canal around
Niagara Falls. From 1808 to 1863, resolutions were passed, surveys ordered
and reports made, but Congress failed to make an appropriation for construc-
tion, which was variously estimated by the engineers employed, at from
$1,000,000 to $3,000,000. The routes were mainly from above the falls to the
vicinity of Lewiston. No such construction was authorized or provided for
then or since.
The completion of the Erie Canal in 1825, with a harbor on the Niagara
River, near Buffalo, and the construction of railroads approaching Niagara
Falls, put the Niagara portage into disuse, and turned the thoughts of those
interested in the utilization of the waters of Niagara River from the facilities
of transportation to the development of power.
NIAGARA RIVER HYDRAULIC COMPANY, 1832
The first united effort to utilize the power of the Niagara River as a main
purpose, apart from transportation, appears in the incorporation of the
Niagara River Hydraulic Company, April 11, 1832. This was a project for
a hydraulic and manufacturing development at Squaw Island, near Buffalo,
at the junction of the Erie Canal with the Niagara River, bordering on its
eastern shore and upon the "Pierpont Harbor" and the lower "Black Rock
Harbor." The water-power available at this island was comparatively small.
Although the location was some distance from the falls, the development of
this project was thought to be detrimental to the further settlement, at that
period, of the town of Niagara Falls.
A map was prepared showing the entire island, laid out in mill-sites and
residential lots, under the name of : The Village of Pierpont on Squaw Island,
owned by Ogden Edwards and Henry F. Penfield.
The explanation of the map follows:
The Blackrock Harbour has created a water-power at this point of five feet Head
and Falls. It is at the foot of a ship navigation of 1000 miles and at the Commencement
of the Grand Canal. The Mill Lots are all 100 feet broad and from 150 to 200 feet
deep or long. The Building Lots are 50 by 100 feet. The Streets are 60 feet wide,
excepting adjoining the mill seats, where they are 30 feet wide. The blocks are 400 by
200 feet. There is a Horse Boat Ferry from Pierpont to Canada and it is connected
with the Maine by a Dam seventy feet wide and a free Bridge.
92
PROJECTS THAT FAILED TO MATERIALIZE
It is worthy of note that those streets called Bre(a)ckenridge, Porter and
Barton bore the names of engineers of The Niagara Falls Power Company
engaged in construction work at Niagara Falls during 1890-1895.
The Squaw Island project never reached the stage of actual construction.
THE FANNING CANAL-TUNNEL SCHEME
Lewiston Water Supply Company, 1888
One of the most comprehensive and expensive of the many projects sub-
mitted by engineers of recognized ability and experience was that proposed
in the latter part of the year 1888 by J. T. Fanning, chief engineer of the
St. Anthony Falls Water Power Company, of Minneapolis, Minnesota,
acting in behalf of the Lewiston Water Supply Company1 whose charter,
capital stock, franchise, project, plans and property were acquired by The
Cataract Construction Company in February, 1890.
The Fanning project possessed many features of the "hydraulic" canal, and
of the discharge "tunnel" plan of Evershed, but the length of each element was
much greater. It included what the others did not, a canal or inland harbor,
600 feet long, 150 feet wide and 20 feet deep, with 4 miles of wharfage front
for the terminal accommodation of lake shipping. The canal system was pro-
jected to supply a large number of water-wheels which were to discharge
their water through a system of tunnels into the lower river.
Mr. Fanning concluded a statement regarding the project as follows:
There is no water-power where the expense of repairs, attendance and supplies can be
reduced to so low a minimum.
There is no large water-power in America so well protected from destructive effects
of running logs and ice or from the breaking of dams higher up the stream, or having
such probable immunity from accidents, or having so many elements of safety and
permanence.
There is no site of a large water-power having equal facilities to receive all kinds
of raw materials in large abundance at so low a cost, no site that can receive common
or skilled labor with greater facility, or that can send its manufactured products to
such a variety of large markets with greater facility, and there is no large water-power
site in America where development gives greater promise of both practical and financial
success.
Niagara was not to attain her true destiny under this regime. The potentiali-
ties of the great cataract far transcend any scheme for utilization of power
restricted by the methods then in use. This project is interesting because it
represented a full development of water-power enterprises in this country at
that period, that were based upon the long-used system of building a mill over
a wheel-pit — a method that received its knell at Niagara in 1890.
1 Charter expired in 1893 for non-use.
93
NIAGARA POWER
$100,000 PRIZE FOR NIAGARA POWER AT BUFFALO
Among the citizens of Buffalo who appreciated the advantages that would
accrue to their city if the power of the Niagara River were put to practical
use in that community were Messrs. Richard H. and James B. Stafford,
proprietors of the "Famous Fulton Market," situated at the corner of Church
and Pearl streets. It occurred to these gentlemen that if a sufficient induce-
ment were offered to enlist the interest of engineers and inventors in the
problem, some hope might be entertained of a satisfactory solution in which
their fellow-citizens might profit.
They accordingly opened a subscription list for the creation of a fund of
$100,000 for this purpose, and by their personal efforts succeeded in obtaining
110 subscriptions aggregating $109,500. Following is the form of subscrip-
tion and the list of subscribers, all, with one exception, for $1000 each:
BUFFALO, N. Y. JULY 14th, 1887.
The undersigned agree to pay the sums set opposite their names respectively, in the
manner hereinafter stated, to a fund, which shall constitute a prize or reward, to be
offered to the inventors of the World, for the discovery or invention, and sole right to
use the same, of the best appliance for utilizing and one that will utilize it commercially,
the water-power of Niagara River, at or near Buffalo, so that such power may be made
practically available for various purposes throughout the city. None of the subscrip-
tions hereto shall be payable unless the aggregate sum subscribed shall amount to at
least one hundred thousand dollars, and when that amount is subscribed, a meeting
of the subscribers shall be called, at which meeting each subscriber may cast one vote
for every fifty dollars he has subscribed. Such meeting shall determine the specific terms
and conditions on which the offer of said prize or reward shall be published to the world,
and shall determine the manner and time of payment of the subscriptions hereto.
Adams, James
Barnard, Jos. E.
Barnes, Hengerer & Co.
Barr, G. D.
Bishop, Chas. F.
Box, Henry W.
Brady & Drullard
Brayton, S. N., M.D.
Briggs, G. D.
Burns, Millard S.
Bush, John W.
Busch, Fred
Butler, E. H.
Campbell, John A.
Cook, P. N. & Co.
Coppins, Frank T.
Cowles, S. H.
Curtiss, C. G.
Cutler, A. & Son
Davis, W. H.
Dimick, Loi-enzo
Dingins, John C.
Eagan, S. F.
Emmet, J. K.
Fargo, F. F.
Ferris, P. J.
Germain, G. P.
Graves, John C.
Greene, Samuel B.
Hagen, F. P.
Hamlin C. J., Wm. & Harry
Hammond, S. W.
Harrington, D. W.
Harvey & Henry
Hautmann, F. J.
Hefford, R. R.
Heimbruch & Hodge
Hodson, Matthew
Howard, Geo. R.
Howard, R. L.
Hughes, John
Inglehart, F. M.
Irlbacker & Davis
Johnson, W. H.
Kent, H. M.
King, Wm. J.
Kirkbauer, H. D.
Kittinger, Joseph
Koons, Henry
Lautz, Chas.
Lautz, Fred C. M.
94
PROJECTS THAT FAILED TO MATERIALIZE
list of subscribers — continued
Linen, John R.
Locke, Franklin D.
Loh, Fred C.
Loomis, Frank M.
Lyman, C. M.
Lyth, Jno. & Sons
Lytle, Chas. P.
Mack, Norman E.
Marshall, Chas. D.
Martin, John
McMillan, Daniel H.
McMullin, Fred L.
Mills, Edward P.
Moore, J. Lansing
Morgan, D. E. & Son
Morgenstern, Jacob
Movius, E. H.
Nagel, Jno. C.
Nellaney, M.
Oatman, Leroy
O'Day, Daniel
Onello, Lewis
Palen, M.
Palen, Robert
Partridge, G. W.
Pooley, Chas. A.
Potter & Williams
Pratt, P. P.
Ratcliffe, S. M., Jr.
Rebstock, J. E.
Reilly, Wm. B.
Richardson, Chas.
Rockwood, E. A.
Rumsey, D. P.
Sandrock, George
Satterfield, John
Schaefer, G. A.
Scheu, S.
Sherman Bros. & Co. Ltd.
Smith, John H.
Smith, Wm. B.
Stafford, Jas. B. & R. H.
Stafford & Co.
Storer, Samuel L.
Sweet, C. A.
Swift, H. J.
Taylor, H. L.
Taylor, R.
Thomas, J.
Thorn & Angell
Wadsworth, H. C.
Walker, Wm. H.
Warner & Co.
Weill, Henry & Co.
Wennell, Michael
Winnan, Erastus
Wood, W. E.
Wright, A. P.
Zink & Hatch
The local newspapers supported the idea enthusiastically by communicated
articles and by editorials, and the scheme soon attracted world-wide publicity.
Projects were submitted in ever-increasing number, the mail becoming so
heavy that a society, the Buffalo Business Men's Association, was formed
under the presidency of James B. Stafford to take care of it, with Peter J.
Ferris, one of the subscribers, devoting his entire time to the matter as secre-
tary of the association. The whole third floor of the Fulton Market Building,
on Pearl Street, was used as a storage and exhibition place for the models
which were brought in by the inventors or received by express.
At about this time, a fair was being held at the Hamlin Driving Park,
through which flowed the Scajaquada Creek. The various inventors were
invited to take this opportunity of testing their models in the creek to show
how they would perform under natural conditions. Many of the inventions
failed utterly under the tests, and none succeeded in convincing the subscribers
of their merit.
One of the results of the interest thus awakened in the Niagara River was
the formation of the Niagara Hydraulic Electric Company, a Virginia
corporation with authorized capital stock of $20,000,000, which had for its
object a great development of power by means of hydro-electric machines to
be located in caves excavated behind the falling water at the great cataract,
in such a way as to utilize the water without diverting it. The Messrs. Stafford
NIAGARA HYDRAULIC ELECTRIC COMPANY, 1887
95
NIAGARA POWER
were much interested in this scheme, and gave its promoters their active sup-
port, until convinced by a visit from Peter A. Porter of Niagara Falls, who
was promoting the plan of Thomas Evershed, which will be fully dealt with
in a later chaj>ter, that the latter project was far more promising of practical
success.
The Business Men's Association was therefore dissolved, without debts and
without having called upon its subscribers for any money. The effort, how-
ever, was a demonstration of the public sentiment of many influential citizens
in Buffalo and was considered as an urgent invitation to extend a power line
to that city at the earliest opportunity.
"THE MODEL CITY NIAGARA POWER DOUBLED"
Under the foregoing title, a prospectus of thirty-two pages issued in 1893
presents a sample of projects of another character. The word Niagara, sug-
gesting such related words as colossal, inexhaustible, opportunity, power,
fortune, was a word with which the promoter could conjure.
The project mainly sought, first, to develop 15,000 acres of land border-
ing on Lake Ontario and extending southward to Lewiston and, second, to
build a power canal to take water from the Niagara River, east of the town
of La Salle and to conduct it to the lands of the company and its manufac-
turing districts, providing power by a fall at the escarpment or Niagara
terrace.
The following statements were among those used to emphasize the com-
mendation of the investment by its promoters :
Nothing approaching it in magnitude, perfection or power has ever before been
attempted.
If you intend to invest, do so promptly, take advantage of "first prices" and "choicest
locations" and thus control "the largest possible profits" with the amount of money
at your command.
Our vast Development Fund of $25,500,000, our cheap homes for workmen, our
"free sites, free power" and other advantages "practically guarantee success" and
"rapid development" such as no other city in the world ever experienced.
Risk of loss is entirely eliminated. There is no risk and a compound accumulative
profit in the earliest investment.
We do not urge any one to invest, wishing only to call attention to the foregoing
facts that you may be able to place yourself among the most favored ones in the enter-
prise if you wish to do so.
Designed to be the most perfect city in existence.
Unlimited water-power. Superlative conditions. Foresight. Investments. Profit-
sharing Plants.
96
PROJECTS THAT FAILED TO MATERIALIZE
The company did some work of construction upon the sections of its canal
at the proposed inlet and the outlet at the escarpment. The companies became
bankrupt, and the moneys invested in the enterprise were lost.
FUTILE PROJECTS AND PROJECTS WHICH HAVE PERSISTED
The consideration at Buffalo in 1882 of a sewerage system and of the
issuance of $3,000,000 of city bonds for its cost led to a project widely ad-
vertised that was intended to avoid the necessity of issuing these bonds. It
was hoped thereby to combine the flow of sewerage with that of the waters of
the lake in a tunnel that would discharge under the falls of Niagara and
develop a water-power for manufacturing upon a large acreage secured on
Grand Island for factory sites. This was called a splendid dream for the
utilization of Niagara power. Practically it was a diversion of a large amount
of water from the falls to a. sewerage discharge below the falling waters taken
from the mouth of the river at Buffalo. The enterprise was forecast as a
magnificent sewerage system for a city with a population of five million and
the erection of thousands of mills and factories. Although this project received
recognition from the city government that appointed a committee of seven
citizens for the purpose of making a report on the feasibility and desirability
of the proposal, it also failed to materialize and the city of Buffalo was obliged
to pay for its own sewerage system.
Inducements to invest at Niagara were seldom accompanied by explana-
tions of physical difficulties that were almost insurmountable and impediments
which awaited the development of scientific knowledge, invention and en-
gineering skill.
These impediments challenged conquest.
Many new actors, novel projects, and startling inventions will appear as
the records of a decade are uncovered by succeeding chapters.
The interest in power development on a large scale near Niagara Falls has
been related in the account of the hydraulic canal in Chapter IV. The evolu-
tion of the Evershed tunnel project, the second of the great power projects
which has persisted, will be told in Chapter VIII.
The futile efforts of the pioneer years are now all but forgotten. Their
rehearsal is of historic interest and it shows how long and disappointing was
the road to success. Even $100,000 reward for a method of bringing power
from Niagara to Buffalo brought forth no practical plan in 1887; such an
achievement at that time was unattainable. Yet in less than a decade the
commercial transmission of power to Buffalo was inaugurated, on a scale
then unprecedented, and by the method now universally employed for the long-
distance transmission of power.
97
STATE RESERVATION
AT NIAGARA
1869
1879-1885
Chapter VI
Niagara does not belong to Canada or America.
Such spots should be deemed the property of civilized
mankind ; and nothing should be allowed to weaken
their efficacy on the tastes, the morals and the enjoy-
ment of all mankind.
Andrew Reed and Thomas Matthewson
Delegates to the
Presbyterian Churches of America
1834
The history of Industrial Niagara is the history of
one of the most vital economic developments of the
age. More than one important industry has been
entirely revolutionized by the application of Niagara
power.
Charles Mason Dow
Commissioner of the
State Reservation at Niagara
STATE RESERVATION
AT NIAGARA
Suggested in 1869, Officially Proposed in 1879, Made Free, July 15, 1885
CHAPTER VI
PROPOSAL OF RESERVATION
THE first recorded mention1 of attention being called to "the rapidly ap-
proaching ruin of the characteristic scenery of Niagara," was in 1869,
when Frederick E. Church, artist, mentioned it to Frederick Law Olmsted,
landscape architect, both Americans. During the following years to 1879 the
desecration continued with a retarding influence upon the tourist visitations,
and the subject of the preservation of the falls and its natural setting was
agitated with evidence of an increasing public interest. Notwithstanding a
vigorous and well-organized campaign, under experienced and recognized
leadership, it was difficult to persuade the legislators at Albany that it was
wise and prudent to purchase Niagara Falls and its surrounding property
on the American side, for which many millions of dollars were demanded
while the constitutional debt limit of the state permitted the increase of its
total bonded indebtedness at that time by only $1,000,000. It required seven
years of strenuous effort to educate and persuade the state legislators that
the people they represented were intent upon having "Niagara made free,"
as the slogan expressed the public purpose.
The official procedure commenced with the appeal of Lucius Robinson,
governor of the State of New York, in his annual message of January 7, 1879,
when he stated :
The civil jurisdiction over the Falls of Niagara as well as the shores and waters of
the Niagara River is divided between this State and the Province of Ontario, in Canada.
But, in one sense, the sublime exhibition of natural power there witnessed is the property
of the whole world. It is visited by tourists from all quarters of the globe, and it would
seem to be incumbent upon both governments to protect such travelers from improper
annoyances on either side.
The commissioners of the State Survey2 reported to the legislature in
1879 that
There is no American soil from which the Falls can be contemplated except at the
pleasure of a private owner and under such conditions as he may choose to impose ;
1 Charles M. Dow, The State Reservation at Niagara, pp. 9-15.
2 A survey by triangulation of the entire State of New York was undertaken, commencing in 1875, in
the creation by the legislature of the New York State Survey. A board of commissioners of seven
citizens was appointed. The legislature of 1879 resolved: "That the Commissioners of the State Survey
are hereby directed to enquire, consider and report what, if any, measures it may be expedient for the
State to adopt for carrying out the suggestions contained in the annual message of the Governor with
respect to Niagara Falls."
101
NIAGARA POWER
none upon which the most outrageous caprices of taste may not be indulged or the most
offensive interpolations forced upon the landscape.
Lord Dufferin, Governor-General of Canada, acting in accord with the
Governor of the State of New York, called the attention of the government
of Ontario to the suggestion of an International Park, and recommended co-
ojjeration with the State of New York to accomplish the purpose in view.
A public memorial1 in behalf of the preservation of Niagara Falls, ad-
dressed to the Governor of New York and the Governor-General of Canada,
in 1879, was signed by the highest officials and the leaders in literature, art,
science, law and statesmanship in England and America. Rarely, indeed, has
such a company of eminent men in different lands united in a common object.
In this memorial occur the following sentences:
Objects of great natural beauty and grandeur are among the most valuable gifts
which Providence has bestowed upon our race. The contemplation of them elevates
and informs the human understanding. They are instruments of education. They con-
duce to the order of society. They draw together all races and thus contribute to the
union and peace of nations.
An increase of population of the village of Niagara Falls and the extension
of the improvements for residences or industries along the bank of the river,
above and below the falls, followed soon after the advent in 1877 of the
Schoellkopfs as owners of the hydraulic canal and builders of houses and
factories. The growth of this section of the village was naturally along or near
the banks of the river, within sight of its rapids, its falls and its gorge. Many
of the lots became points of vantage or of view for the land-owner or visitor,
where the stranger was wont to become a victim and the tourist to abbreviate
his visit.
These commercial aggressions impressed the increasingly numerous visitors
to the falls with the urgency of preserving the natural beauties of the upper
and lower rapids and the falls, beyond the power of private or selfish interests
to diminish their grandeur, impair their attractions, or decrease the pleasure
of their contemplation.
The grandeur and majesty of Niagara Falls are to be comprehended only
by personal experience. As so eloquently expressed by James C. Carter, "it
is the combined appeal to every sense and every faculty, exalting the soul
into a higher sphere of contemplation which distinguishes this spot over all
others. Niagara is an awful symbol of Infinite power — a vision of Infinite
beauty — a shrine — a temple erected by the hand of the Almighty for all the
children of men." Hence the movement to rid the spot of every touch of
commercialism and as one of the recognized scenic wonders of the world, to set
1 Annual Report of the State Reservation XIX, pp. 26-34.
102
STATE RESERVATION AT NIAGARA
it apart so that all nations and peoples of all languages might come together
and behold the scene unmolested.
This idea soon became an organized public sentiment. Its expression in
the press and legislature aroused the state administration to consider the
public interests involved in the local situation. Plans were prepared for the
purchase of the scenic property by the State of New York, to be held and
maintained in perpetuity as a public park under the title of the Niagara
reservation, free for the pleasure and education of the people.
James C. Carter indicated how large a part sentiment plays in the preserva-
tion of extraordinary natural scenery and how careful people have been for
centuries and now are to protect such wonders as Niagara from profanation
and exploitation. In alluding to the oracle at Delphi, Mr. Carter1 said:
The sentiments of men are oftentimes more powerful than their interests even, and
history furnishes some interesting proofs of the depth of the feelings, closely akin to
those of triumph of which we celebrate today, which connect the sentiment of reverence
in man with great natural objects. The superstition of early Greece asserted the
existence at Delphi of a miraculous cleft in the earth, from which bursts forth a divine
afflatus capable of inspiring the awful responses of Apollo ; but this mere fable could
scarcely have sufficed to render the spot the principal shrine of the favorite god. Situated
in the most picturesque valley of Greece, at the foot of the lofty summit of Parnassus,
it was the beauty and sublimity of the scene which enhanced the fame of the oracle. It
was the surrounding scenery exalting the imagination and kindling the religious
emotions, which attracted the multitude of votaries and rendered the place the center
of the Hellenic world. But the devout sentiments of the pilgrims were offended by the
petty exactions of the neighboring seaport of Cirrha, and the fertile plain around the
temple excited the cupidity of the neighboring husbandmen to make continual encroach-
ments upon the sacred precincts of the god. The evil was endured for a time ; but in
the end Greece arose in resentment at the profanation, and in a devastating conflict of
ten years, fitly styled the "Sacred War," destroyed the offending town and choked up
its harbor; swept from the Circassian plain all evidences of human ownership, and thus
vindicated the insulted majesty of the god, and asserted the right of worshipers from
every land to approach the great oracle unmolested.
LEGISLATION AND SELECTION OF SITE
In 1880 the State Survey Board recommended
the extinguishment of the private titles to certain lands immediately adjacent to the
Falls, which the State should acquire by purchase and hold in trust for the people
forever.
In that year a bill was introduced in the legislature to authorize the selection
of lands for a state reservation in the village of Niagara Falls. But action
was delayed. To overcome such delay by united efforts to educate the people
1 James C. Carter, of New York, in his oration at dedication of state reservation in 1885.
103
NIAGARA POWER
of the state regarding the conditions at Niagara Falls and the advantages of
the proposed state reservation, an association was organized as "The Niagara
Falls Association," under the presidency of Howard Potter of New York,
with a membership of more than 300, including Charles Lanier and Edward D.
Adams, the former of whom became treasurer of the association and both,
later, directors of The Niagara Falls Power Company. The bill providing for
selection of lands became a law April 30, 1883.
The commissioners appointed under this law selected a tract of 112 acres,
in addition to 300 acres under water, comprising the entire area of 412 acres
acquired for the state park, as shown by the following outline plan.
The reservation1 was described by the following resolution :
RESOLVED, that in the judgment of this Board, it is desirable to select and locate as
proper and necessary to be reserved for the purpose of preserving the scenery of the
Falls of Niagara and of restoring the said scenery to its natural condition, the following
lands situate in the village of Niagara and the county of Niagara, to wit : Goat
Island, Bath Island, the Three Sisters, Port Island, Luna Island, Chapin Island,
and the small islands adjacent to said islands in the Niagara River, and the bed of said
river between said islands and the main land of the State of New York ; and also, the
bed of said river between Goat Island and the Canadian boundary ; also a strip of land
beginning near "Port Day" in said village, running along the shore of said river, to
and including "Prospect Park" and the cliff and debris slope under the same .... and
including also at the east end of said strip sufficient land not exceeding one acre for
purpose convenient to said reservation, and also including all lands at the foot of said
falls, and all lands in said river adjoining said islands and the other lands hereinbefore
described.
APPRAISEMENT AND PURCHASE
The commissioners of appraisement, appointed under the supplemental
Act of 1884, met at Niagara Falls on February 23, 1884, to view the premises
and to take testimony respecting the ownership and value of lands that it was
desired to acquire for the state reservation. The first consideration was given
to Goat Island, the surrounding islands and a portion of Bath Island.
When under examination before the commissioners, Peter A. Porter stated
that he appraised the island of 66.2 acres at $1,000,000, based upon the
income to be derived therefrom, and exclusive of its value as a water-power
site. Upon the completion of the appraisal, a report was made to the com-
missioner of a total valuation of all the lands to be acquired for the park, at
$1,433,429, although the claim of the property owners amounted to about
$4,000,000. This appraised valuation was confirmed by the Supreme Court
and the awards made, upon this basis of value, for the purchase by the state.
A witness under examination expressed the opinion that Goat Island was
the best location for hydraulic development of power, as it permitted a short
1 See map, page 106.
104
STATE RESERVATION AT NIAGARA
inlet-canal near its middle, with side canals to wheel-pits discharging into the
river on each side of the island.
The process of appraising the lands is described as follows :
Messrs. Luther R. Marsh, of New York, Matthew Hale of Albany, and Pascal P.
Pratt, of Buff alo, were named by the court as Commissioners of Appraisement. Having
taken their oath of office and viewed the premises they received testimony as to value.
Their sessions for this purpose were held continuously through the month of July, 1884,
and a voluminous mass of testimony received. In September they met to hear the
final arguments of counsel, and on the 20th of that month made their report, which
was filed with the testimony taken before them on September 22, 1884, in the office
of the clerk of Niagara County.
In said report they awarded for the entire area of land to be taken to the respective
owners and to all persons and corporations interested therein the total sum of
$1,433,429.50.
Application on due notice was then made to the Supreme Court for the confirmation
of this report, and on the 27th of October, 1884, an order was granted Avhereby the
appraisers' report was in all things ratified and confirmed and the amounts awarded
as compensation for the lands taken were ordered to be paid. This order of con-
firmation was filed and recorded in the office of the clerk of Niagara County on
November 25, and in the office of the Secretary of State in Albany on November 26, 1884.
On the trial before the commissioners of appraisement a question of great importance
arose as to the rights of the riparian owners to use the power afforded by the Niagara
River for hydraulic purposes, and to receive compensation therefor. It was claimed
by the proprietors of the islands and of riparian lots that they owned the bed of
Niagara River ; and independently of this, that they had a right to use, without stint,
the power afforded by the rapids and the falls for hydraulic purposes ; and they
claimed that they should be compensated for the value of this vast water-power, even
where it had not been reduced to use. Upon this basis they were prepared to present
claims aggregating twenty or thirty millions of dollars. After full argument and care-
ful consideration, the commissioners of appraisement rejected all such claims, except
where the water-power had been actually reduced to use and used for a period long
enough to create a prescriptive right. They hold (1) that Niagara River is a public
stream, and its bed and waters belong to the state; (2) that as against the state
private riparian owners have no right to encroach on its bed to divert its waters, or to
subject them to the burden of manufacturing uses, unless they have acquired such right
by grant from the state or by prescription. As two of the commissioners of appraise-
ment first above mentioned are distinguished lawyers, their decision on these points
is entitled to great weight.
After the exclusion of such claims for the value of unused water-power, the claims
of the owners of the property amounted to about four million dollars. The aggregate
awards, as already stated, are but little more than one third of this sum.
An act to acquire the lands selected for the proposed reservation, and an
"Act to provide for the maintenance and management of the State Reserva-
tion at Niagara" became laws in 1885.
105
NIAGARA POWER
PUBLIC INTEREST IN THE RESERVATION AND POWER
On July 15, 1885, the lands were accepted by Governor Hill on behalf of
the state, and the reservation was formally opened to the public, under the
control and supervision of the Commissioners of the State Reservation at
Niagara, as defined by the laws of 1883.
About 75,000 enthusiasts gathered at these ceremonies in Prospect Park,
at which numerous guests from Canada besides prominent officers of the
nation and state were present.1
rsru — II ?! 7/
State Reservation at Niagara
From How's "Anthropology and Bibliography of Niagara Falls"
Following the dedication of the park, the demolition of about one hundred
and fifty buildings, that debased the scenic beauties of the falls and their
immediate surroundings, proceeded slowly by reason of inadequate financial
resources available.
The revelations of impressive scenery hidden by commercial obstructions
for more than one generation, created surprise and admiration, while the
people acclaimed the legislative action that made the restoration possible and
permanent.
1 There were 2741 cars in the excursion trains in the season of 1887 that brought 166,000 visitors to
Niagara Falls. The visitors crossing the bridge to Goat Island, in the fiscal year to June 30, 1924,
amounted to 2,179,710 and for the year 1924-1925 to 2,445,772. The parking of automobiles and providing
for the necessities of the family visitors in their travelling bungalows, have become a present problem in
the administration of the daily affairs of the Niagara Reservation.
106
STATE RESERVATION AT NIAGARA
Natural conditions having been finally restored, facilities were afforded
for easy access to vantage points for rest and the quiet enjoyment of sound,
form and color and the many expressions of creative power that are recog-
nized in the grandeur, sublimity and wonders of Niagara Falls. And what a
transformation was brought about and with what enlightened interest visitors
began to view the site !
Here people of diverse tastes now meet and pursue their various interests
without interruption by so-called guides or conflict with local speculators.
The botanist explores the island, examines the lists of the flora and seeks
the Lobelia kalmii and the Hypericum kalmianum associated in name with
Kalm, the Swedish botanist, who visited the falls in 1750.
1 An example of the Lobelia was found on Goat Island on September 7, 1926, by Miss Mary E. Eaton
of the New York Botanical Gardens, who reproduced it in color. A search by her with the assistance of
the local superintendent failed to discover any examples of the Hypericum. Apparently it had died out,
as the superintendent had not seen any specimens for several years. Dr. John A. Torrey obtained a
specimen of this plant either on Goat Island or the table rock at Niagara in 1842. This was published
as a colored illustration in "The Flora of New York," 1842. Miss Eaton made a copy of this illustration
in water-color, so that these two plants discovered and named for Kalm will be preserved as represented
by Miss Eaton in the Niagara Museum.
107
NIAGARA POWER
The geologist is interested in the geology, rock stratification, fossils, evi-
dences of glacial action, and the recession of the falls.
The historian inquires about the aborigines, the Neuter Nation, the French
discoverers, the titles to the land and the water, the portage trails and the
arrow-head quarry.
The lover of nature is concerned lest the beauty and grandeur be lost by
the diversion of water or through the self-destruction of the cataract.
The engineer inquires as to the source, the quantity and regularity of flow
and proposes means for controlling the water and developing and distributing
its power for myriad uses.
The far-seeing citizen and the statesman, concerned with the conservation of
our natural resources, deplore the waste of energy and wonder why so little
is being used. They ponder as to the rising price of coal and they estimate the
true economic value of power derived from exhaustible mineral, precious for
producing heat, compared with that from the inexhaustible and ever-renewing
supply of water.
POWER
The establishment of the state reservation naturally placed restrictions
upon power development and greatly increased the difficulties and expenses
involved.
Because of the purchase of the shore of the river by the state, new power
developments must be made outside of the reservation. This established the
western limitation to all projects for the diversion of water from the river
at a point approximately 1 mile above the falls and its return to the river,
a half mile below the falls, thus greatly adding to the expenses and other
difficulties of power developments. These very difficulties, however, hastened
the coming of the new order in the practical utilization of the falls.
As the natural beauties became enhanced through the appropriate setting
provided by the park system, it became apparent to those who most ardently
desired to put the waters of Niagara to work, as well as to others, that no
jarring structures or other desecrations would be tolerated within or im-
mediately beyond the reservation. Thus the architectural features of the two
power-houses erected above the falls were designed to give an air of dignity
as well as stability to the place.
Strength is also embodied in the structures to withstand the elements with-
out and to control the forces within.
The high banks below the falls no longer advertise the improvident use, as
in several early instances, of only one-third of the available power ; unsightly
structures have been replaced by rugged strongholds of power that, like the
power-houses above the reservation, inspire confidence in the forethought of
108
STATE RESERVATION AT NIAGARA
the management that has built for permanency of occupation, regularity of
production, continuity of service and efficiency of operation.
Here is the source of heat, light and power that is rendering a useful and
important service in the industrial and domestic life of millions of people in
the State of New York, and is contributing to electro-chemical products
which are indispensable to the nation.
Niagara has been developed to perform the double service of ministering
to material prosperity and to spiritual well-being.
VISITORS TO GOAT ISLAND
The monthly visitors to Goat Island during the two years from September 1,
1923-1924 and 1924-1925 are officially reported as follows:
1923-1924
1924-1925
October
100,750
135,935
November
61,378
59,508
December
39,856
24,769
Januar}7
26,246
52,057
February
31,713
56,452
March
51,615
60,800
April
101,326
151,708
May
161,492
233,120
June
313,636
370,456
July
475,323
485,088
August
586,303
505,331
September
227,072
310,548
2,179,710
2,445,772
In spite of the fact that the number of tourists who visited Niagara Falls
during the summer of 1926 decreased at least 30 per cent, the stream of visitors
to the Niagara Falls power-plant knew no diminution. On August 15, 1926,
alone, 3264 tourists viewed the "great triumvirate of power" in Station 3-C,
belonging to The Niagara Falls Power Company, taxing the maximum
capacity of the company's facilities to receive its guests, causing a congestion
in traffic by elevator and stairway at times.
109
♦
EVOLUTION OF
THE NIAGARA FALLS POWER COMPANY
THE EVERSHED SCHEME
NIAGARA RIVER HYDRAULIC TUNNEL, POWER AND
SEWER COMPANY, THE BEGINNING OF THE
ENTERPRISE WHICH DEVELOPED INTO
THE NIAGARA FALLS POWER
COMPANY, 1886
Chapter VII
The Evershed Scheme1 Indicating Elevation of the
Tunnel and Plan of the Canals
Vertical Section Showing Several of the Wheel-pits
Map Indicating Location and Scope of Evershed Plan
Twelve canals supply water to 238 wheels distributed over an extended area which
discharge through a common tunnel system
1 See Chapter XVII, Volume II, for details of the Evershed proposals and of its modification by The
Cataract Construction Company.
THE EVERSHED SCHEME
PROMOTED BY THE NIAGARA RIVER HYDRAULIC TUNNEL, POWER AND SEWER
COMPANY, THAT UNDER OTHER OWNERS USING DIFFERENT METHODS BECAME THE
NIAGARA FALLS POWER COMPANY WHICH CONTRACTED FOR THE DESIGN,
CONSTRUCTION AND FINANCE OF ITS ENTERPRISE WITH THE
CATARACT CONSTRUCTION COMPANY
CHAPTER VII
ORIGINAL EVERSHED SCHEME
WE come now to the inception of the project destined to develop into the
first successful application of Niagara power on a scale commensurate
with the magnitude of the falls and with the demands of modern industry. It
necessitated methods then practically unknown and apparatus not yet invented
but which were soon developed and here first used in creating a gigantic uni-
versal power system, for operating industries of the old type and making
possible others, new in kind and in products. The following account has been
derived in part from some of those who participated in its early promotion.
On February 3, 1886, there appeared in the Lockport U nion, a newspaper
published in the city of Lockport, Niagara County, a letter to the editor from
Thomas Evershed, of Rochester, a division engineer of the Erie Canal. The
letter was head-lined "Engineer Evershed's Water-Power Scheme." In his
letter Mr. Evershed discussed a proposition, which had appeared in the same
newspaper, by Alexander Holley, a hydraulic engineer of Lockport, which
involved the construction of a surface canal from the Niagara River about 10
miles above its Great Falls, at or near North Tonawanda to Lockport, a
distance of nearly 15 miles; the development there, upon the Niagara escarp-
ment, of a great hydraulic power and the discharge of the tail-race waters
through the "Eighteen Mile Creek" into Lake Ontario, a total distance from
river to lake of about 25 miles. After explaining why the project was im-
practicable, Mr. Evershed stated:
If the people of Niagara County wish to indulge in a scheme for a magnificent water-
power, let me point out one.
He then outlined a plan for power development at Niagara Falls which he
described as follows :
Beginning at a point in the gorge below Niagara Falls just north of the state reserva-
tion and the upper Suspension Bridge, and about twelve feet above the surface of the
water, run a tunnel so as to strike the river above the mouth of the hydraulic canal, a
distance of about five thousand feet, then continue the tunnel under the river's edge, say,
five thousand six hundred feet farther, making two miles of tunnel.
This last mentioned 5600 feet can be utilized as a tail-race for factories taking the
water from the river close by.
115
NIAGARA POWER
With wheel-pits sunk in the rock this water could be used with turbine wheels under
a head of eighty to one hundred feet as is now done below the high falls at Rochester.
A hole or holes drilled from the bottom of these wheel-pits into the tunnel below,
will take off the water so used.
The wheels could be placed every twenty-five feet apart if necessary, and the power
cabled off to any point desired, running any number of mills and factories of any size,
from the making of toothpicks to a Krupp's foundry.
The cost of doing this can be calculated, say the tunnel is sixteen feet square or
equal thereto, in round numbers 1,000,000 yards at $9.00 a yard, $9,000,000, say
$10,000,000.
This scheme, it will be observed, was a reversal of previous designs. In
the earlier projects mills on the edge of the cliff below the falls received
their water through an open canal and utilized a portion of the fall at the
cliff, on which buildings were erected for its use. The hydraulic development
proposed by Mr. Evershed was to be constructed mainly as a tunnel and
located between the lower and the upper river about 1 mile or more above the
Great Falls. There was no departure from the familiar custom of a mill
over a wheel-pit. It was hoped that by the arrangement proposed, the old
difficulty at Niagara Falls "that there has not been land enough to use the
water-power,"1 might be obviated. The long tunnel was intended to facilitate
the location of the industrial district above the falls and beyond the limits of
the state reservation to a site where ample facilities might be provided by
land, dockage, streets and railroads to accommodate 238 mills of 500 horse-
power each, a total of 119,000 horse-power.
Mr. Evershed's letter immediately attracted the attention of Myron H.
Kinsley, of Niagara Falls, who was then the superintendent of the Oneida
Community, Limited, manufacturers of metal wares and one of the early
users of water-power from the canal of the Schoellkopf company, The Niagara
Falls Hydraulic Power and Manufacturing Company. Mr. Kinsley became
greatly interested in the project and brought it to the attention of Charles
B. Gaskill, another local manufacturer, and one of the first users of power from
the hydraulic canal. Colonel Gaskill quickly comprehended the possibilities of
the Evershed plan and the two manufacturers consulted Henry S. Ware,
of Niagara Falls, who was then engaged in the contracting business.
After conference they consulted Thomas V. Welch, a prominent citizen
who had been a member of the state legislature and had taken the leading
part in securing the passage of the legislation which resulted in establishing
the New York State Reservation at Niagara, of which, at this time, he was
the superintendent.
1 Testimony of Stephen M. Allen in 1884 before the commissioners of the state reservation.
116
THE EVERSHED SCHEME
It was also deemed wise to bring the matter to the attention of William
Caryl Ely, a lawyer at Niagara, who, with Mr. Welch,1 had been a member for
several years of the State Assembly, and who had recently come to the falls
to practise his profession. He had been a resident of an interior county and
prominent in the Democratic Party and its candidate the previous year for
Speaker of the Assembly. He likewise had participated in the final stages
of the effort to make "Niagara free," and was a man of wide acquaintance
and fully cognizant of the difficulties that might be expected to be encountered
in any such matter requiring legislative action.
These five men in February, 1886, met at the office of the superintendent
of the state reservation, on Bath Island, and discussed the practicability of
Mr. Evershed's plan and its possibilities.
Personal familiarity with the local conditions at Niagara Falls and the
history of several unsuccessful efforts that had been made for the utilization of
the falls, prompted the promoters of the project of 1886 to seek facilities and
powers of the state authority under special legislation or charter that could
not then be obtained under the general laws prevailing at that time.
The franchise requirements in aid of new forms of industrial development
had not at that period been publicly recognized as of sufficient importance to
be provided for in the general laws of the state, to which incorporators of
industrial projects had recourse for capitalization and operating powers.
Nevertheless, projects of general public interest and novelty and of
sufficient promise in prospective expenditure to attract the support of citizens
of wealth and influence were at that period encouraged by special legislation
to meet what were thought to be their special necessities. The granting of
such special charters had then begun to attract public criticism as a bestowal
of valuable rights without adequate compensation or the reservation of control
by the state.
PROCURING THE CHARTER
The determination was reached by the parties above named, to proceed
with the enterprise to procure a charter by special act of the legislature, and
to Mr. Ely was delegated the preparation of a bill for that purpose.
It was also decided to associate as incorporators Mr. Evershed, the author
of the scheme, James Eraser Gluck, an attorney at Buffalo, and Michael
Ryan, the business partner of Mr. Welch, at Niagara.
The bill having been prepared by Mr. Ely and approved by Mr. Gluck,
was taken to Albany by Messrs. Welch and Ely and was submitted to Peter
A. Porter (son of Gen. Peter B. Porter), then member of the Assembly
1 See How Niagara Was Made Free, Thomas V. Welch, 1885.
117
NIAGARA POWER
from the Niagara Falls district. After carefully considering the matter, Mr.
Porter approved the proposed bill and introduced it in the Assembly.
Upon Mr. Ely then devolved the burden of managing the bill, which, in
view of the current opposition to special legislation, provoked much discussion
and exhibited at various times the undeniable symptoms that usually denote the
danger of what might be termed "legislative asphyxiation." The bill probably
would have failed had it not been for the aid of William F. Sheehan, of
Buffalo, then beginning to loom large against the political horizon. He was
the Democratic leader and at several critical moments actually assumed
personal charge of the measure and made the motions necessary to secure
its advancement. He was also powerful in its behalf in the Senate. The bill
finally passed both houses and received the consideration, and finally the
approval of the governor on the 31st day of March, becoming Chapter 83 of
the laws of 1886, thus incorporating the Niagara River Hydraulic Tunnel,
Power and Sewer Company of Niagara Falls, New York, known as the
tunnel company.
The corporate name, which seemed to some persons to be somewhat ex-
traordinary and possibly to some amusing, had been chosen with great care
and served the useful purpose of imparting to the legislation a public aspect,
which was to be serviceable during all the time in which the incorporators
were engaged in procuring the charter and the company in procuring the
public and private grants of the privileges, easements and titles to lands
necessary for its purposes.
Meanwhile, a bill had been prepared under the auspices of the Chamber
of Commerce of the city of Lockport, to incorporate a power and water supply
company on the lines of the Holley plan heretofore referred to. That charter
became a law before the charter of the tunnel company was passed. It was not
opposed by the Niagara Falls interests, for by agreement each party rendered
assistance to the other.
Notwithstanding the growth of sentiment against such special laws and
the recognition by the governor and the state legislators of this attitude of
the public, they were not slow to appreciate the force of the argument of
W. Caryl Ely, of Niagara, that the greatest available natural power of the
world was carrying seaward or was wasting unutilized and without cessation,
the wealth of an empire, and that the company attempting to harness even a
small part of such forces required and was entitled to the encouragement of
special authorities and powers, not provided under the general laws of the
State of New York.
118
THE EVERSHED SCHEME
When signing the act incorporating the tunnel company, the governor is
said to have remarked that he would have preferred the charter to have been
issued under the general laws, but he recognized the impracticability, and
signed this special law, although the ink was scarcely dry upon a message he
had sent to the legislature advising against such special enactments.
The fact that the original charter of March 31, 1886, was amended by acts
of special legislation on five separate occasions, of which three were each in
consecutive years of the company's most rapid growth and greatest expendi-
tures, is an evidence that its pioneer work was recognized by the people of the
state and encouraged by its legislators.
The special acts are described as follows :
Original Charter
Chapter 83, March 31, 1886
Capital stock limited to $3,000,000. Corporate existence fifty years.
Amendments
Chapter 489, May 29, 1886
May issue full paid shares in payment for land and other property necessary
for the business.
Chapter 109, April 5, 1889
Additional tunnels, sewers or conduits authorized. Power given to deal in lands
and to take and use water from Niagara River. Unpaid subscriptions to
shares may be cancelled within one year. Bonds authorized secured by
mortgage.
Chapter 253, April 23, 1891
May acquire and hold shares in certain other companies and issue shares therefor
and acquire title to property under condemnation law of the state. Increase
capital stock to $10,000,000.
Chapter 513, May 12, 1892
Company made subject to certain provisions of the stock corporation law of the
state. Rights to use water within prescribed limits made subject to supply
of water and electricity for light and power, free of charges, to the State
Niagara Reservation. Right to take water from Niagara River restricted
to no "more water than shall be sufficient to produce two hundred thousand
effective horse-power."
Chapter 477, April 25, 1893
Stockholders' liability to creditors made subject to provisions of stock corpora-
tion law of the state. Company empowered to furnish waters of Niagara
River not exceeding amount heretofore expressly authorized (200.000 effec-
tive horse-power), or any power, heat or light developed therefrom in any
civil division of the state.
119
NIAGARA POWER
The pioneer or experimental character of the venture and the developments
of its program of construction may be traced in the successive enactments of
the state legislature, primarily constructive and as requested by the com-
pany, and later restrictive by the state for the protection of its citizens as the
possibilities of the extent of the power distribution system proposed and its
adoption were understood and appreciated in its possible effect upon the
beauty of the Great Falls as nature fashioned them.
Although the company was authorized by its amended charter to acquire
title to land in the manner specified by the condemnation law of this state, no
use of this power has as yet been made by the company in its many negotiations
for use or ownership of real property. The state, however, used its power of
condemnation in procuring some of the property that was included in the
Niagara State Reservation, reserved for the recreation of its citizens and
visitors.
ORGANIZATION
The Niagara River Hydraulic Tunnel, Power and Sewer Company was
organized at Niagara Falls in June, 1886, and commenced its operations
under the leadership of Charles B. Gaskill and the local associates as officials,
namely : ^
J Officers
President Charles B. Gaskill
1st Vice-president
2nd Vice-president
Treasurer .
Secretary .
Henry S. Ware
Michael Ryan
Francis R. Delano
Myron H. Kinsley
( W. Caryl Elv, Niagara Falls
Att°rnejS | J. Fraser Gluck, Buffalo
Engineer Thomas Evershed, Rochester
The capital stock book was opened and the sum of $200,000 was subscribed
as follows : , Shares
Francis R. Delano 167
W.Caryl Ely 167
Thomas Evershed 167
Benjamin Flagler 167
Charles B. Gaskill 166
James Fraser Gluck 167
Myron H. Kinsley 166
A. Augustus Porter 166
Peter A. Porter 167
Michael Ryan 166
Henry S. Ware 167
Thomas V. Welch 167
$200,000 par value of 2000
120
THE EVERSHED SCHEME
PROSPECTUS
In the meantime, the plans of the company were being matured; a pro-
spectus was in preparation, and preliminary conferences and correspondence
were being carried on with engineers, financiers and manufacturers by those
connected with the enterprise. In August, 1886, the printed prospectus'
made its appearance. At a meeting held August 25, 1886, the president re-
ported that he had placed a book for stock subscription at the Manufacturers
and Traders' Bank at Buffalo, subject to a commission of five per cent on all
subscriptions obtained, and that the president of the bank had evinced a very
great interest from the beginning in the plans of the company. Thomas V.
Welch and Benjamin Flagler were appointed a committee to arrange for
opening stock subscription books at the offices of bankers in New York and
Boston. The effort was to obtain subscriptions in New York for $500,000, in
Boston for $500,000, in Buffalo for $200,000, and in Niagara Falls for
$200,000, a total of $1,400,000, and the secretary was directed to ascertain
what arrangements, if any, could be made to obtain subscriptions in Minne-
apolis, Chicago and London.
Charles B. Gaskill, the president of the company, communicated with
many manufacturers of the country and stimulated by him and his associates,
Mr. Evershed, who had been made the engineer of the company, com-
municated with such engineers as James B. Francis, of Lowell, Clemens
Herschel, then of Holyoke, and J. T. Fanning, of Minneapolis, all hydraulic
engineers of high reputation who had been successful in the development of
the largest water-powers then in use in this country. Mr. Evershed's report,
presented to the board of trustees at its meeting July 1, 1886, showed that
he had devoted a great deal of labor to the preparation of the plans, and that
they had been submitted by him to Elnathan Sweet, state engineer and
surveyor, who on July 19, had approved them in a letter to President Gaskill
as shown in the prospectus of the company. On September 9, the board of
trustees of the village of Niagara Falls passed resolutions formally con-
senting to the construction, operation and maintenance of the tunnel under-
neath the village.
That it would be difficult to secure the necessary money by stock subscrip-
tion was apparent to all of the incorporators. Nevertheless, it was determined
to endeavor to obtain the capital in this manner if possible. It would at least
serve a useful purpose, it was claimed, in giving to the enterprise a great deal
of desirable publicity.
1 Water Power at Niagara Falls to be Successfully Utilized. Company prospectus, with maps, 1S86.
First edition.
121
NIAGARA POWER
FRANCIS R. DELANO
FRANK A. DUDLEY
HENRY DURK
Officers
and Directors
OF THE
"Gaskill Company"
THE
Niagara River
Hydraulic Tunnel,
Power and Sewer
Company
of
1886
*W. CARYL ELY
THOMAS EVERSHED
Negotiations were opened with the leading men of Buffalo, as well as those
at Niagara Falls, but without success. The subject was also introduced among
various bankers and others of New York City and Boston, all of whom were
disinclined to become financially interested in the stock of the company.
The prospectus of 1886 contained the following paragraph under the
subject title of
° POWER FROM NIAGARA FALLS BY ELECTRICITY
It is conceded by leading practical electricians that it would be entirely practicable
now to light the city of Buffalo (distance 20 miles) with power furnished by Niagara
Falls, and the opinion is rife among scientific men that ways will be found in the near
future for transmitting this power to much greater distances and for using it in many
new ways. Should this be done, the unlocking of this great natural store-house of power,
* Deceased
122
THE EVERSHED SCHEME
which is proposed in this prospectus, will bear an importance not exceeded by any
private or public work in the State. It cannot fail to interest every one.
An application has already been received from a manufacturer in Birmingham,
England, for an opportunity to test his apparatus for conveying power by means of
compressed air.
President Gaskill had already taken up the matter of possible electrical
development with Gardiner C. Sims, of Armington & Sims Engine Company,
Providence, Rhode Island, who was born in Niagara Falls and whose mother
and brother were at the time still residing there in their old home, to which
Mr. Sims occasionally returned. Mr. Sims was a co-worker with Thomas
A. Edison, and in the engine works at Providence constructed the engines
* Deceased
12.3
NIAGARA POWER
ALEXANDER J. PORTER
PETER A. PORTER
MICHAEL RYAN
Officers
and Directors
of THE
"Gaskill Company"
THE
Niagara River
Hydraulic Tunnel,
Power and Sewer
Company
of
1886
'HENRY S. WARE
'THOMAS V. WELCH
that were used in the Edison experiments and developments. As early as
November, 1886, Mr. Sims informed Colonel Gaskill that Mr. Edison had
investigated the possibility of transmitting electrical power from Niagara
Falls to the city of Buffalo, and had gone as far as to make estimates of costs
and efficiency.
LONDON NEGOTIATIONS
Messrs. Welch and Ely, who during their legislative experience had become
well acquainted with Francis Lynde Stetson, a prominent lawyer of New
York City, determined to talk the matter over with him, and Mr. Welch went
to see him. Mr. Stetson manifested a great deal of interest in the matter in a
preliminary way and encouraged Mr. Welch to feel that he would give it
* Deceased
124
THE EVERSHED SCHEME
careful investigation. Nothing definite resulting from this, President Gaskill
opened negotiations with Raymond S. Perrin, of New York, who stated that
he had business relations with T. Gilbert Bullock, of London, who was the
representative of an English syndicate, and requested that he be given an
opportunity to enlist the interest of Mr. Bullock and his friends. Authority
being given Mr. Perrin, he took the matter up with energy and in December
appeared at a meeting of the tunnel company at Niagara Falls and presented
definite proposals for a contract of option to purchase all the rights and
property of the company on behalf of Mr. Bullock, as the representative of
an English syndicate. A resolution was adopted authorizing President Gaskill
to make a contract to sell Mr. Perrin, or his assigns, all the company's property
rights, privileges and franchises for $650,000, payable in installments, at the
office of the Farmers Loan and Trust Company of New York, on or before
the following dates:
February 1, 1887 $100,000
April 1, 1887 100,000
June 1, 1887 178,000
$378,000
Balance in contracts for land
to be assumed 272,000
Total $650,000
Contingent upon the faithful performance of the contract for sale, a con-
tract was authorized granting to Raymond S. Perrin for ten years the right
to lease 125 mill-sites to be selected by him, of an average size of 100 by 200
feet, with 500 horse-power available for use thereon, for the annual rental of
$5 per horse-power, payable from the time the mills were put in operation.
Authority was also voted in favor of a contract with Raymond S. Perrin
for the construction of the main and cross tunnels, conduits, shafts, raceways,
bulkheads, masonry and appurtenances.
The resignations of officers and trustees and the surrender of all rights of
incorporators, effective upon performance of contract of sale by Mr. Perrin,
were also agreed upon, prepared and signed.
About the first of December, the contracts with Mr. Perrin were signed
and deposited in escrow with the Farmers Loan and Trust Company of
New York.
The annual report of the company, published as required by the state
laws, January 18, 1887, in daily papers, declared its existing debts to be
$700, and that its capital stock was $200,000, all subscribed, but of which no
portion had been paid in. This report could not have been other than detri-
mental to the pending financial negotiations in London.
125
NIAGARA POWER
At this stage the matter had become intensely interesting. The advices from
England were frequent and showed that the Bullock syndicate had put up a
considerable amount of money for the development of its plans, which resulted
in the incorporation in London, of the Niagara Falls Hydraulic Tunnel,
Power and Sewer Company, Limited, with an authorized capital stock of
£1,000,000 and with a very distinguished board of directors. It was stated at
Niagara that the English syndicate had provided £20,000 for expenses so far
as might be found necessary by its representatives in their investigation of
the project.
The London prospectus, printed, but not issued, quoted the reports of the
American engineers, Elnathan Sweet, New York State Surveyor, and
Thomas Evershed, division engineer, New York State Canals. The reports
also of English engineers were quoted as follows:
May 31, 1887 Jabez Church, Past-president, Society of
Engineers, London
I am of opinion that the proposed works could without doubt be successfully carried
out.
June 17, 1887 G. N. Abernethy, Member, Institution of
Civil Engineers
I can see nothing in this scheme which in my opinion presents any extraordinary
difficulty in construction. The scheme taken as a whole seems ably designed and the
details well considered, the power being also well distributed and economically arranged.
November 15, 1887 Hazzard and Tyrrell, Members, Institution
of Civil Engineers
The scheme as laid out by Mr. Evershed is simple and well designed and would no
doubt realize, as motive power, the results expected from it. To assure continuity of
operation these engineers strongly recommend that all the tunnels should be lined
throughout in the most substantial and permanent manner. This would increase the
estimated costs to $600,000.
It is noteworthy that none of the reports of the English engineers mention
recent visits to Niagara Falls as the basis of their information.
The jirospectus also contained the following :
Sir William Siemens pointed out, according to the London Standard of December,
1886, that if all the coal produced by all the mines in the world were used for raising
steam and applied in the most economical manner, it would not create a force equal
to the Falls of Niagara. What however principally struck Sir W. Siemens was the
power of the Falls to drive dynamos, by which power could be conveyed by electricity
to a distance, and the electric light supplied to all the towns of the State of New York.
When the original negotiations with Mr. Bullock assumed form, they
began to move more rapidly, and it was arranged that cablegrams should be
126
THE EVERSHED SCHEME
sent to the Canadian side of the river and then delivered to the company on the
American side by messenger from the telegraph office on the Canadian side.
This was in accordance with the confidential conduct of all these financial
negotiations, which were attended with great secrecy. About the middle of
January, 1887, a cablegram arrived announcing that the English syndicate
was a success and that the payment of the first $100,000 would be made on
February 1, 1887, the due-day therefor. Messrs. Ely, Gaskill, Kinsley and
Welch met at one of their homes and indulged in mutual congratulations.
One may not even imagine their chagrin when they discovered that the cable-
gram had been sent by mistake to the telegraph office of the New York Central
Railroad upon the American side. The New York Central agent, immedi-
ately sensing its importance, sought out a friend, who possessed both courage
, and capital, and together they had ridden the surrounding territory and
secured options upon a great deal of land, so that when the quartet of pro-
moters attempted to secure land for the company and themselves, "the cat
was out of the bag" and the prices of all lands anywhere in the vicinity of
Niagara Falls had advanced greatly, never to come down to the former
value. By reason of what he had done the agent lost his position, but he im-
mediately opened up a successful real estate business and became independent
of railroad employment. His partner in the land option campaign is said
eventually to have realized what to him was a fortune by the operation. As a
result, the tunnel company and its discreet promoters paid comparatively high
prices for lands purchased thereafter.
FINANCIAL DISAPPOINTMENTS
Before the arrival of the date set for the first $100,000 payment, there came
a hitch in the proceedings; the payment was not made and the time was
extended. On March 24th, at a meeting of the company, President Gaskill
stated that George Bliss, a lawyer of New York, had been retained on behalf
of some persons interested in the English tunnel company to make an ex-
amination of all contracts and other actions taken by the Niagara River
Hydraulic Tunnel, Power and Sewer Company, and had applied through
attorney William B. Rankine, of New York, for additional papers. This is
the first recorded mention of Mr. Rankine's name in connection with the
enterprise.
Mr. Rankine stated that Mr. Bliss was making a critical examination of
the papers on deposit with the Farmers Loan and Trust Company on behalf of
the London and Westminster Bank, the bankers of the English company.
The report of Mr. Bliss made an unfavorable impression in London and
caused the syndicate to withdraw from what was considered a "risky and
127
NIAGARA POWER
unwise investment." Thereupon the syndicate surrendered its optional con-
tract, provided for its expenditures, about $20,000 it was reported, and dis-
solved.
RESUMPTION OF FINANCIAL NEGOTIATIONS AT HOME
The five original promoters of the enterprise were greatly disappointed at
the failure of the London negotiations. At the commencement of their efforts
they had high expectations of a successful project, creditable to their local
position, advantageous to the community, and profitable to all parties inter-
ested therein. Now they were in the slough of despondency. But under the
patient and persistent leadership of Charles B. Gaskill they determined to con-
tinue their efforts to finance the project, even though they might be obliged to
abandon all expectations of personal profit as the originators of the project,
in order to make a success of the undertaking.
An assessment of $150 each was voted by the ten trustees present at a meet-
ing held January 25, 1888, to meet a note at the bank and other current
expenses.
About this time A. Augustus Porter died, and his son, Alexander J. Porter,
returned to the falls to live and look after the interests of his father's estate.
He became the secretary of the company in place of George N. Miller, who
resigned after having served well in that capacity from the inception of the
company and without condensation. Alexander J. Porter was elected a
trustee, June 2, 1888.
After the failure of negotiations with the English syndicate, an effort was
made to interest the financial group in control of the New York Central
Railroad through their counsel, Daniel H. McMillan, of Buffalo, to whom
options were given on two separate occasions. Here again was disappoint-
ment, and loss of time and money.
As it was believed that the familiarity of the great public with the name
Niagara and what it represented in water-power going to waste, might be
utilized to secure the necessary capital, books of subscription to the capital
stock of the company were again opened, and the plans were exhibited in
various cities, but this method was not successful.
Prior to the English negotiations of 1886-1887, William B. Rankine, whose
family resided in the western part of the state, and who was familiar with
affairs at Niagara Falls, presented the subject of the improvement of the
Niagara water-power to Francis Lynde Stetson, with whom he had been
associated in the office of the Corporation Counsel of that city.
The passage of the Act of 1886, authorizing the Niagara River Hydraulic
Tunnel, Power and Sewer Company, by special charter, to utilize the power
of Niagara Falls, attracted much attention. The efforts made to finance the
128
THE EVERSHED SCHEME
company in 1887 in the English as well as the American money markets
were well understood in financial and engineering circles, and their failures
deplored, particularly in the western part of the State of New York, where
great advantages were expected from the utilization of the falls, in increase
in values and in the population that would be attracted to that section by the
prospect of inexhaustible and never-failing power, at prices below those pre-
vailing for power as then produced from coal.
The opinion became current in Niagara and Buffalo that the Evershed
plans for the power development were not adapted to the natural conditions
of the locality, especially from the point of view of the financier, who could not
be assured of current income upon an investment of large and doubtful
amount and unknown risk that had been previously declined by numerous
engineers and practical men who were familiar with the local surroundings.
It was stated that the original promoters of the tunnel company, after
five years of strenuous and loyal co-operation, expressed the opinion, in ex-
planation of the causes of their lack of success, that the project dealt with
hydraulic forces far greater than man had ever before attempted to control.
Men of experience and capital, it is said, warned investors that the project
was visionary and unsafe.
Although local pride prompted the exhaustion of all possible efforts to
promote the enterprise, the results were discouraging. The population and
property of that community were comparatively small, and its business activi-
ties were conservative and mostly inherited.
The promoters of the enterprise were not capitalists. They were devoted
admirers of the falls, which they considered a public asset of great value.
They were confident believers that the practical people of the nation would
eventually utilize the great force that was hourly wasted. They were loyal to
the interests of their neighbors. They cherished hopes of accomplishment and
fortune, but through the anxieties of prolonged and unsuccessful negotiations
at home and abroad, they had acquired experience and were prepared, if
necessary, to surrender expectation of profit if they might achieve their pur-
pose to bring prosperity to the community in which they lived.
It was true that local men, who should best understand the value of the
opportunities, had examined the merits of the enterprise as presented and
declined to invest or recommend. But the promoters of Niagara Falls had
faith that somehow — but they could not then conceive in what manner —
other people's money and experience might accomplish what was so greatly
desired as a stimulus to local prosperity. Engineering and financial circles at
home and abroad had considered the project and declined. The name Niagara
129
NIAGARA POWER
had failed to conjure capital for its control, but the falls still remained as a
delight and wonder, while its observers pondered its problems of nature and
entertained dreams of science applied.
EARLY NEGOTIATIONS WITH MR. STETSON
It was under these conditions that the Niagara promoters again sought to
interest Francis Lynde Stetson, of New York, in their project. Mr. Rankine
resumed his negotiations of the previous year on behalf of the tunnel company
with Mr. Stetson, who gave attention to the subject from time to time during
the following year, and on June 2, 1888, acquired an option to purchase the
capital stock of the company.
Further investigations followed during the year and the option was sur-
rendered in December, 1888.
It was then determined to attempt to place an issue of the company's
bonds. Messrs. W. Caryl Ely, Henry S. Ware and James Fraser Gluck
were ajDpointed a committee to consider the plan therefor. They reported at
a meeting held December 15, 1888, in favor of an issue of $2,500,000 bonds
bearing interest at five per cent per annum and maturing in 20 years. The
committee also recommended that "proposals for construction and trans-
mission by electricity be obtained."
President Gaskill reported to this meeting the names of persons from
whom he had secured offers to take power to an aggregate of 12,900 horse-
power for the gross amount of $124,500 annually, and that in addition, a
company would be formed at Tonawanda to take power which would yield
$5000 per annum.
At this meeting Colonel Gaskill presented a draft of a revised prospectus
and a report from Mr. Evershed, the engineer of the company, dated
December, 1888, giving details of estimates of dimensions, locations and costs
of tunnels and cross tunnels, and necessary lands and the location thereof.
A committee was authorized to prepare and present at the next meeting of the
trustees, a proof of the new prospectus. This was prepared but not issued.
In his report, Mr. Evershed discussed the costs of lands and amounts of
land and power that would probably be required by lessees, cited the sug-
gestions of Mr. Fanning concerning the same, and said "we must have all the
land up to Elizabeth Street."
Mr. Ely presented a report to this meeting of December, on the condition
of the right-of-way for the tunnel under the village of Niagara Falls showing
valid releases from all property owners excepting the New York Central and
Hudson River Railroad Company, The Niagara Falls Hydraulic Power and
Manufacturing Company, and five individual land owners, three of whom
130
THE EVERSHED SCHEME
were ready to sign their deeds and from all of whom titles were eventually
obtained.
On December 22, 1888, a meeting of the trustees was held, and Messrs.
Gaskill, Kinsley and Gluck were constituted a committee to go to New York
and negotiate with persons making a proposal that had been forwarded by
Mr. Rankine. These negotiations were unsuccessful.
On January 5, 1889, a resolution was passed appointing Mr. Rankine as
incorporator, he agreeing to accept an equal share with the other stockholders
in lieu of other payment for "his legal services past and to come."
Meanwhile there were no outward evidences of the interest or efforts of
Messrs. Rankine and Stetson, and the "Great Enterprise" seemed again to
languish. Thus another winter, 1888-1889, wore away. But in Mr. Stetson
the leaven was evidently finally working, for in February he suggested an
amendment to the charter, clarifying and enlarging the rights to take and
use the waters of the river and to locate and construct works therefor.
The measure was introduced in the Assembly on the 26th of February and in
the Senate on the day following. Its management was entrusted to Mr. Ely.
After some vicissitudes it was finally passed in both houses April 5, and on
the same day received the approval of Governor David B. Hill.
On May 10, William B. Rankine made a statement at a meeting of the
stockholders regarding his negotiations with Mr. Stetson.
At this time it was resolved at a meeting of the trustees that the unpaid
portion of the subscription to the capital stock of the company be released
and three shares, fully paid, be issued to each stockholder, representing the
$300 cash paid upon each subscription and used for current expenses.
NEGOTIATIONS FOR SALE OF COMPANY
UNDER OPTIONAL CONTRACTS
Thereafter matters between the Niagara and the New York interests were
actively taken up. On July 5, 1889, Messrs. Stetson, Rankine and Edward
A. Wickes, the latter recognized as a "Vanderbilt man," appeared at a meet-
ing of the tunnel company board of directors held at the office of Superin-
tendent Welch in the State Reservation at Niagara, and plans were then
outlined by Mr. Stetson for the formation of a new corporation to be entitled
The Cataract Construction Company, that would prepare a method of de-
veloping the power and act as the financial agent of The Niagara Falls
Power Company. A preliminary agreement was presented under which the
two companies would proceed towards the final execution of the project by
The Cataract Construction Company as the contractor and representative of
the tunnel company about to be acquired.
131
NIAGARA POWER
The draft contract as presented gave evidence of careful preparation and
was thoroughly considered at the morning meeting and at adjourned meetings
in the afternoon and evening and until an early hour the following morning.
It was amended upon the motion of the tunnel company directors in a great
many of its details and finally approved and executed, provisionally, by both
parties with the understanding that a fair copy should be prepared for formal
execution.
The contract provided that the name of the Niagara River Hydraulic
Tunnel, Power and Sewer Company of Niagara Falls, New York, should
be changed, at its expense, to The Niagara Falls Power Company. This was
done under authority of the meeting of the trustees, September 19, 1889, and
by a proceeding under the general laws of New York, conducted by Mr. Ely
and published November 11, 1889.
The preliminary contract contained a proviso that The Cataract Construc-
tion Company "would on or before the first day of December, 1889, enter into
a proper and formal construction contract, of which the performance shall be
secured by subscriptions, satisfactory to the board of directors of the Niagara
company, to the cataract company's treasury to the amount of at least
$600,000 (a) to construct the first section of the tunnel; and (b) to pay into
the treasury of the Niagara company upon or before the first day of January
1892, the sum of one hundred thousand dollars."
As the first day of December, 1889, drew near, the indications increased
that further delay was to be expected, and on November 28th, a letter was
received from Mr. Rankine asking an extension of thirty days. The directors
of the Niagara company took no action upon the request and asked Mr.
Rankine to meet them. On the 30th of November the board met again with
Mr. Rankine present, with the result that an extension was granted to
January 1. On the preceding day Messrs. Stetson and Rankine visited the
falls and obtained a further extension until February 1, with a modification
of the preliminary contract of July 5, 1889, so as to include additional work
and compensation to The Cataract Construction Company of both bonds
and shares of a par value of $2,200,000 each. At this time the purchase of
Grass Island for $2000 was authorized, as well as an agreement of the
preceding day granting to the Niagara company the right to construct
its tunnel across and under the hydraulic canal of The Niagara Falls Hy-
draulic Power and Manufacturing Company, for $20,000 payable in cash
and bonds.
Again, on January 27, the period of execution of the formal Niagara-
cataract contract was extended to March 31, and later to April 1, 1890.
132
THE EVERSHED SCHEME
On February 18, 1890, the trustees of the Niagara company authorized the
Purchases of land from twenty different owners for the total sum of . . . $ 291,500
Increase of capital stock to 2,000,000
Issue of 40-year five per cent first mortgage bonds 6,000,000
Call of stockholders in meeting, March 8, 1890, to authorize the issues of capital stock
and bonds proposed.
The entire share capital was represented at this meeting, and the issues of
stocks and bonds proposed were unanimously authorized by the twelve
shareholders.
Early in March, Mr. Ely called the attention of Mr. Stetson to several
important reasons why no further options should be given and why the pro-
posed formal contract should be executed without further delay, among
which were the following: A commission on statutory revision had reported
to the legislature of 1890 and was pressing for passage bills with reference
to the general laws of the state governing corporations which contained
provisions that Mr. Stetson and Victor Morawetz, who was now acting with
Mr. Stetson in the capacity of counsel, deemed inimical to the plans of the
Niagara and cataract companies.
In the correspondence that ensued, Mr. Ely and the president and secretary
of the Niagara company convinced Mr. Stetson of the necessity of proceeding
without further delay to make the formal contract. Into this decision entered
strongly the fact that all of the optional land contracts hinged upon the
execution of the formal contract on or before April 1, 1890.
The Cataract Construction Company became the agent of The Niagara
Falls Power Company "in the negotiation of leases and contracts, the em-
ployment of operating forces for its plant, and the collection of its accounts
for rentals due under its leases."
OPTIONAL CONTRACTS THAT RESULTED IN SALE
The financial negotiations of the Gaskill Tunnel and Sewer Company may
be summarized as follows :
The capital subscribed by the trustees in 1886 amounted to $200,000, of
which $3600 (one and eight tenths per cent) was paid in cash. In 1889, the
unpaid balance was cancelled and the subscribers released therefrom.
The contracts for purchase of lands and various rights were mainly optional
agreements, with prolonged periods for their determination, but mostly on
or before April 1, 1890.
The first efforts to procure capital were directed to the principal financial
centers with much formality in opening books of subscription to the share
133
NIAGARA POWER
capital of the company, and with personal solicitations where the Great Falls
were well known, but no encouragements to expect subscription to the stock
were received.
The English negotiation, under auspices thought most favorable, was
authorized for the sale of the rights, franchises and shares, for the sum of
$650,000, and a tunnel company was formed in London to facilitate the
preliminary examinations and to provide for the expenses thereof. After
several months of investigation, and the preparation of a financial prospectus,
the contracts of option were surrendered and the business declined.
Then followed numerous efforts in the United States for the sale of bonds
secured by a first mortgage upon the franchise, rights and privileges acquired.
These were not successful.
The promoters of the Gaskill tunnel enterprise were discouraged. Options
and payment on contracts for land were maturing. The sale of the entire
property and rights of the company appeared to be the only way to avoid
financial embarrassment.
Negotiations for a sale of the company with all its assets had been pending
with Francis Lynde Stetson, and continued at intervals for several years to
April 1, 1890, when a formal agreement was made between The Niagara
Falls Power Company and The Cataract Construction Company for purchase
by the latter of all the capital stock of The Niagara Falls Power Company
and for the payment of certain liabilities for services and contracts for lands
and rights-of-way.
Payments were authorized in cash and in bonds as follows :
In payment for the entire capital stock of The Niagara Falls Power Company
and the services of its trustees, officers and counsel, to January 1, 1892, in
first mortgage bonds of the Niagara company . $174,000
For right-of-way under and across the canal of the hydraulic power company
as provided in the agreement of December 31, 1889 ($5000 previously
paid)
In payment for lands under contract
in bonds .
15,000
187,000
in cash
Total Bonds .
. $376,000
. 106,500
Total Payments
. $182,500
Constituting a purchase of the
Entire capital stock at
Lands, purchased and under contract
Right-of-way for discharge tunnel .
$174,000
293,500
15,000 $482,500
134
THE EVERSHED SCHEME
Following is the distribution of purchase price :
Francis R. Delano, trustee, as reimburse-
ment of his disbursements for account
of the company $ 4,000
W. Caryl Ely ' 12,000
Estate of Thomas Evershed, deceased . . 15,000
Benjamin Flagler 12,000
Charles B. Gaskill 14,000
James Fraser Gluck's assignee 12,000
Myron H. Kinsley 12,000
Raymond S. Perrin, for services in English
negotiations 5,000
Estate of A. Augustus Porter, deceased . . 10,000
Peter A. Porter 12,000
William B. Rankine, for services to and in-
cluding June I, 1889 14,000
Michael Ryan 12,000
Francis Lynde Stetson, for services prior
to June 1, 1889 16,000
Henry S. Ware 12,000
Thomas V. Welch 12,000
Total Payable ix Boxds
$174,000
Although The Cataract Construction Company thus acquired the owner-
ship of the entire capital stock of The Niagara Falls Power Company, it was
considered good business policy to retain publicly, as well as privately, the
association and co-operation of the local representatives on the board of
trustees of the Niagara company, while the New York stockholders were
represented by the board of directors of The Cataract Construction Company,
particularly as the latter company was engaged in the formulation and ex-
ecution of the Niagara company's plans of construction, operation and finance.
THE NIAGARA FALLS POWER COMPANY
1889-1899
During the ten-year period from July 5, 1889, when the preliminary and
optional contract was made with The Niagara Falls Power Company for the
acquisition of its shares and assets by The Cataract Construction Company,
until the contract of May 31, 1899, between the same parties was executed,
by which all contractual relations were cancelled, all the nine trustees of the
Niagara company were selected from stockholders identified with Niagara
Falls and its vicinity, with the exceptions of the election of Coleman Sellers,
of Philadelphia, in 1893, as president and chief engineer, and of Arthur H.
Hasten, of New York, in 1896, in place of Frank A. Dudley, resigned. The
following trustees served upon the board during this period:
Francis R. Delano
W. Caryl Ely . .
Renjamin Flagler
Charles R. Gaskill
Myron H. Kinsley
A. Augustus Porter
Peter A. Porter .
Henry S. Ware .
Thomas V. Welch
Alexander J. Porter
* Deceased
1886
-*1891
1892
- 1893
1886
-*1898
Lauren W. Pettebone .
. 1892
-*1898
1886
-*1898
De Lancey Rankine .
. 1892
- 1893
1886
-*1894j
Frank A. Dudley . .
. 1892
- 1895
1886
-*1891
Coleman Sellers .
. 1893
-*1898
1886
-*1887
William S. Humbert .
. 189-t
- 1898
1886
-*1898
Charles A. Sweet .
. 1894
-*1898
1886
-*1892
Edmund S. Wheeler . .
. 1895
-*1898
1886
-*1891
Arthur H. Hasten . .
. 1896
- 1898
1888
- 1893
135
NIAGARA POWER
By the purchase of the tunnel company, the responsibility for the enter-
prise was assumed by The Cataract Construction Company, representing
the subscribers to its construction fund and the owners of its capital stock.
Charles B. Gaskill-
1841-1919
President
The Niagara Falls Power Company1
1886-1894
Colonel United States Army
Served with Distinction in Civil
and Spanish-American Wars
It was this company that made the investigations in this country and abroad
as to the state of development of the several arts for the production, trans-
mission and use of power from falling water.
1 Incorporated 1886 as Niagara River Hydraulic Tunnel, Power and Sewer Company; name changed,
1889, to The Niagara Falls Power Company.
136
THE EVERSHED SCHEME
The results of these researches, the organizations adopted for scientific
guidance, the decisions made and the constructions carried out, are described
in the following chapters.
COL. CHARLES B. GASKILL
Colonel Gaskill was honored by the highest positions in public service that
his friends of the community could give. He maintained his interest in the
military affairs of the state. Transportation and manufacturing, however,
represented his principal investments. These increasingly demanded his at-
tention as the village of Niagara Falls increased in population, activity and
resources.
As president of the power company from its organization of 1886 to 1894,
several years after he and his associates sold their interests, he brought his
experience of about fourteen years in manufacturing with water-power from
Niagara River and his broader experience with men of large affairs in national
and other activities, to the introduction and development of the Evershed
project.
The project of the hydraulic canal proposed by Judge Augustus Porter
by circular of January, 1847, reached a consummation some thirty years later,
and Colonel Gaskill has the record of being the first user of the water of the
hydraulic canal for industrial purposes.
To have been connected with the early stages of each of the two projects,
in one as first user of power, in the other as leading promoter and president,
which were merged in 1918 into the consolidation entitled The Niagara
Falls Power Company, is the unique distinction which belongs to Col. Charles
B. Gaskill of Niagara Falls.
Gen. Nelson A. Miles, under whom he served, wrote of him:
Colonel Gaskill was one of the best officers and noblest of men that I have ever known.
A more thorough, conscientious, honest patriot never wore the uniform of the United
States Army. His whole heart and mind were interested in the welfare of his command
and in the service of his country. Whatever command he had, whether a company or
regiment, it was in the best possible condition. The service had few, if any, more efficient
officers.
137
NIAGARA FALLS
THE GREAT MANUFACTURING VILLAGE OF THE WEST
Here is a power almost illimitable ; constantly
wasted, yet never diminished — constantly exerted, yet
never exhausted — gazed upon, admired, wondered at,
but never hitherto controlled.
From the Prospectus of the
Niagara Falls Hydraulic Company
Caleb S. Woodhull, President
1853
THE EVERSHED TUNNEL PROJECT
INVESTIGATION AND
MODIFICATION
1889-1890
Chapter VIII
To gather the streams from waste and to draw
from them energy, labor without brains, and so to save
mankind from toil that it can be spared, is to supply
what next to intellect is the very foundation of all our
achievement and all our welfare.
Justice Holmes
U. S. Supreme Couht
THE EVERSHED TUNNEL PROJECT
INVESTIGATION AND
MODIFICATION
CHAPTER VIII
THE EVERSHED PROJECT AND THE NIAGARA PROBLEM
IN the summer of 1889 the story of the century-old attempts to harness the
falls of Niagara finds the new tunnel project in the hands of Francis L.
Stetson and Edward A. Wickes of New York and William B. Rankine of
Niagara Falls. They had acquired the right to purchase the Niagara River
Hydraulic Tunnel, Power and Sewer Company (organized in 1886 by the
Gaskill group ) which proposed to develop power in accordance with the plan
and advices of Thomas Evershed and they had organized The Cataract Con-
struction Company of New Jersey, for that purpose. Various attempts to
finance the project had proved futile, and in August they offered a half
interest in the enterprise to Winslow, Lanier & Company, New York bankers.
Edward D. Adams,1 a partner in the firm, was delegated to conduct an in-
vestigation to determine the merits of the proposals.
The project as outlined in the preliminary plans of Thomas Evershed,
dated July 1, 1889, and described in the preceding chapter, was for the
formation of an industrial town. Mills and factories within an area several
hundred yards wide and extending along and up the river for a mile and a half
were to be driven by individual water-wheels supplied from a dozen inlet chan-
nels or short canals. The water from the wheels at the bottom of the various
wheel-pits would discharge through short tail-race tunnels into a main dis-
charge tunnel about 2^ miles long emptying into the lower river. It was
proposed that this tunnel should be adequate for the discharge from 238
wheels, each supplying 500 horse-power to a single factory, or a total of
119,000 horse-power.
It was seen at once that the novelty and magnitude of the project intro-
duced unsolved and far-reaching problems. For what purposes and where
could so large an amount of power be used? The population of Niagara
Falls in 1890 was only about 5000.
Was the scheme of building up a new industrial center for using power that
"far exceeds the combined available power in use at Holyoke, Lowell, Minne-
apolis, Cohoes, Lewiston and Lawrence" a promising venture? Was it wise
to construct a costly tail-race tunnel instead of following the old method by
employing a long inlet hydraulic canal?
1 His connection with the enterprise has heen continuous during the thirty-seven years intervening
between the original investigation and the completion of this history.
141
NIAGARA POWER
Was the old plan of placing the mill over or near its own water-wheel
adapted to a project of unprecedented magnitude, or could power produced
at one place be supplied to several customers from a consumer system as
was the practise with gas and water and electric light?
Could the power be distributed locally or transmitted to a considerable
distance by shafts or belts or cables, by compressed air or water pressure, or
would electricity which was doing wonderful things in a small way be capable
of handling power on a scale and over distances which far exceeded what had
been accomplished?
Could Buffalo, population about 255,000, the far-distant Mecca for Niagara
power, be reached by any practicable method ?
In short, the inquiry involved broad questions as to the best general engineer-
ing plan for power development at Niagara ; the practicability of the proposed
system employing many inlets and many wheels with a common discharge tun-
nel; the transmission of power over moderate or considerable distances — all of
which meshed into the questions how and where the proposed enormous
amount of power could be so used as to justify the undertaking financially.
DISCHARGE TUNNEL VERSUS CANAL INLET
The proposed discharge tunnel was a practical solution of the specific
problem presented by the conditions then existing at Niagara Falls.
It will be seen by the following plan of Niagara Falls at that date, that
the State of New York had acquired ownership of the land and its riparian
142
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
water-rights extending along the river bank from the Great Falls, 1 mile
upstream to Port Day, and on the bank below the Great Falls to the founda-
tions of the Suspension Bridge. All of this property, with Goat Island and
other small islands, comprising the state reservation, from which industrial
establishments had been removed and permanently excluded.
Port Day and its so-called hydraulic canal, supplying the factories located
at the end of the canal basin of the Schoellkopf company, as shown on the ac-
companying illustration, had been constructed many years before this period.
The village of Niagara Falls, had been established mainly within the triangle
formed by the upper and lower river and the hydraulic canal. The terrain
within the triangular space was unavailable for power developments because,
owing to its permanent inhabitants, it was practically impossible to acquire
in this area the right for a second water intake and canal, or sufficient land for
industrial improvement.
These conditions, and considerations of economy in capital expenditures,
required a power company seeking a location to place its water intake above
the reservation and as near as possible to Port Day on the eastern side, and
its raceway, or its water-wheel discharge, by the shortest line to the lower
river where discharge could be made immediately below the Suspension
Bridge.
A tunnel from the river bank east of Port Day to a point below and adjoin-
ing the bridge foundation thus became the only practical solution of these diffi-
culties, and the large tract of sparsely occupied land between the river and
the lines of the New York Central and the Erie railroads, extending up the
river to and beyond Gill Creek to Connor's Island, recommended itself as the
natural location for a new industrial community.
INDIVIDUAL WATER-WHEELS VERSUS POWER TRANSMISSION
AND DISTRIBUTION
The Evershed plan1 made provision for 238 mills, each supplied with power
by its own 500 horse-power water-wheel. Twelve cross tunnels aggregated
about 3 miles in length and the main tunnel was 2l/o miles long and 14 feet
in diameter.
Difficulties soon appeared. The construction of over 5 miles of tunnel and
238 wheel-pits aggregating some 4 miles more, practically all by rock excava-
tion in a hard limestone deposit, indicated the economy in fewer wheel-pits
and a lessened length of tunnels and inlet-canals. The likelihood of ice in
some 3 miles of comparatively shallow inlet-canals promised to be a serious
menace to dependable operation. Furthermore an industrial development of
1 For drawings see Chapter VII, Volume I, and Chapter XVII, Volume II.
143
NIAGARA POWER
hundreds of mills equivalent to that of half a dozen prominent manufacturing
communities comprised within a restricted area was visionary, requiring a
generation in time and fortunes in expenditures to create.
Obviously power production should be concentrated into fewer units and
if practicable the power distributed to the places where it could best be used.
Without transmission the water-wheels and the mills must come together,
to the detriment of each; but with transmission, the power could be produced
by the most efficient and economical means, and the mills and factories located
to their best advantage in operation.
It was also recognized that large initial investment would be necessary and
that a slowly growing industrial community would produce a tardy income,
while the supplying of electric current to the established communities of
Buffalo and Tonawanda would afford an immediate income for meeting
interest charges on construction costs.
POWER DEVELOPMENT AND ELECTRICAL TRANSMISSION
It was realized that the project involved problems of great magnitude and
that technical advice of a high order was needed in several departments of
engineering. Immediate steps were taken to secure such assistance, particu-
larly in the matter of power transmission by electricity.
MR. EDISON ON ELECTRICAL TRANSMISSION
Naturally, among the first experts to be consulted regarding the Niagara
project was Thomas A. Edison, not only because he designed and introduced
the electric distribution for incandescent lighting by direct-current systems
then in use and rapidly extending, but because a large number of the financial
group then considering the Niagara-Evershed project were associated with
Mr. Edison as directors and stockholders in electric companies bearing his
name.
While Mr. Edison was abroad in September, 1889, he was asked by cable,
respecting the project to transmit Niagara power to Buffalo:
Has power transmission reached such development that in your judgment scheme
practicable.
He cabled from Havre, September 28th:
No difficulty transferring unlimited power. Will assist. Sailing toda}'.
Mr. Edison had made a survey, in 1886, of the situation in Buffalo and what
he termed a rough estimate of the cost of transferring power from the turbine
shaft at Niagara Falls to the center of the city of Buffalo.
His estimates, it is stated, were based upon the delivery of 5000 horse-
power, being the estimated net amount from about 6800 horse-power taken
144
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
from the shaft at the falls and transmitted the 22 miles at a loss of about
20 per cent on the wires, and about 6 per cent on dynamos and "reducers." He
proposed to use 6000 volts, which he then considered as high as any commer-
cial enterprise should use, and with his new reducers at Buffalo, step-down the
voltage to 300-400 volts for power and 200 for lights.
Thomas A. Edison at Work
in His Laboratory
It was during the year 1889 that the partisans of direct and alternating
current resorted to the press in their efforts to create public opinion for or
against their favorite current. The alternating current was new, but its use,
principally for incandescent lighting was rapidly extending both in this
country and abroad. The antagonism in the competition of electrical industries
reached such a point that both currents were recommended for use in the pro-
posed establishment of state execution1 by electric current, and there was
'The only current used at Sing Sing Prison has been the alternating, single-phase, sixty-cycle current.
145
NIAGARA POWER
much discussion as to which current would be preferred by the executioner
and the criminal.
Mr. Edison was written, October 1G, 1889, that the enterprise was then
regarded as a project to furnish power for use in the immediate vicinity of
Niagara Falls by electrical or other methods, and that a comparatively small
amount of light would also be consumed there; that if the project upon this
basis would return a fair rate of interest on the capital invested, one could
safely engage in the business, trusting to development, under good manage-
ment, for the larger results to be expected and that as one of the means of
obtaining large profits, consideration would be given to the supply of power
in Tonawanda and Buffalo and to the distribution of light in those places.
Mr. Edison confidently believed the Niagara-Buffalo transmission' feasible
by the continuous-current system. He welcomed such a favorable opportunity
to estimate the efficiency and commercial value of the direct current and at
once resumed his consideration of the Niagara-Buffalo transmission, under-
taking a new survey of the conditions.
An examination was made on his behalf in 1889 by C. J. Field,2 of Brooklyn,
regarding the proposed transmission to Buffalo, by laying cables in the river
channel. He reported, November 11, estimating that the cable line from
power-house in Niagara to Black Rock, at the northern boundary of Buffalo,
would.be 15 miles via the channel on the Canadian side of Grand Island, and,
by using an underground line directly across Grand Island, the distance
would be reduced to 14 miles. The river bottom was found generally uniform
and nearly free from holes or shoals. There were several rocky places but as
they did not extend across the river-bed, they could easily be avoided in laying
the cables. It was considered entirely feasible to lay and use cables in the
channel of the river.
Mr. Edison recommended the 14 mile line directly across Grand Island,
with the cable in a trench and crossing the river at Buffalo and Niagara by a
pole suspension. Mr. Field's report included the results of his inquiries as to
ice, anchorage, temperature of water, depth of river, canal and ship channel
dredging, etc.
About this period Mr. Edison cabled to Siemens Brothers of London, for
an approximate estimate for the sizes and lengths of cables probably desired.
His comment upon the reply was, "The prices are rather high when 45 per
cent is added (duty) and I think they can be made in this country."
Mr. Field reported that "there is at present about 4000 horse-power at
Tonawanda, which is continually increasing. There are two electric street
1 Cassirr's Magazine of March, 1893.
2 General Manager, Edison Electric Illuminating Company, of Brooklyn.
146
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
railways, also an electric light station contemplated, but are holding off for
the further development of this problem. At Buffalo there is estimated from
40,000 to 50,000 horse-power. The city is spending more than $300,000 for
lighting, of which the gas company is still getting two-thirds."
The estimate received from the laboratory of Mr. Edison, on November 14,
1889, amounted to $5,243,000, as the cost of producing but not of distributing,
by means of a
Main tunnel, with capacity of 120,000 horse-power;
Hydraulic development with turbines and rope or cable transmission
to surface;
Niagara electric station for production of continuous current for
transmission by wires in cables to Buffalo;
Three sub-stations in Buffalo for distribution of light and power,
but not including systems of distribution to consuming customers.
An income of $880,000 net per annum was estimated from a gross annual
revenue of $1,402,000 sold en grosse at the sub-station terminals in Buffalo.
The prospective income was alluring, but capital was particularly cautious
at that time in view of the possibility of a cheaper and more direct form of
transmission becoming available before the main tunnel could be completed.
It was therefore decided to continue investigations while plans were being
prepared for the construction of the tunnel, the backbone of the enterprise.
The hydraulic features of the project were still under consideration, and
the problems of distribution had not yet gone beyond those of local use, from
a central power source, for which systems of water under pressure, compressed
air, and electricity were recommended.
The thorough examination and resulting opinion, as expressed by so
eminent an electrician as Mr. Edison, were convincing that the use of elec-
tricity had not then been sufficiently developed for its economical and
profitable distribution in long-distance transmission for power purposes.
The advantages of the alternating current in long-distance transmission
were then exciting the attention of engineers and under these conditions it
seemed desirable to continue the study of transmission plans until after the
fundamental elements of the main project for primary units had been
decided.
As Mr. Edison declined to accept financial compensation for his services
at this time, an offer was made to pay the expenses of his investigation. To
this suggestion he demurred, and after some estimates of the probable costs
were figured, an offer was made to pay him $10,000 for his maps and statistics.
147
NIAGARA POWER
This offer was also declined, with the statement that he would prefer to keep
his information.
Henry Morton
PH.D., SC.D., LL.D.
1836-1902
Physicist and Engineer
First President of
Stevens Institute of Technology
1870-1902
DR. MORTON ON ELECTRICAL TRANSMISSION
Dr. Henry Morton, president of the Stevens Institute of Technology, was
retained as a scientific adviser and the documents in the case were submitted
to him for analysis. He reported early in September, 1889, as follows:
In reply to your question respecting the practicability and economy of transmitting
power in large amounts through long distances (say units of 1000 horse-power for
10 or 20 miles) by means of electric currents, I would say that the problem is not one
which has as yet received anywhere its practical solution, and therefore we cannot say
it is certainly feasible because it has already been done in such and such a case.
148
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
Large amounts of power have been transmitted to distances of 1 or 2 miles, and small
amounts of power have been transmitted for long distances, such as 30 miles, but the
combination of large amounts of power and long distances has not yet been realized in
practise, and without doubt something new in the dimensions and proportions of elec-
trical machinery must be developed in order to meet the requirements of such a problem
as you propose.
Enough, however, has been done to furnish a sound basis for general calculations and
estimates, and having gone over these with great care, in a variety of cases, I feel
entirely satisfied that a plant could be constructed for the transmission of 1000 horse-
power through a distance of 10 or 20 miles at such a cost as would make each horse-power
available at the end of the line, costs from $10 to $20 per year ; this including all interest
on the cost of electrical machinery, line-wires, buildings and other structures, and the
expense of maintenance as expressed in wages of attendants and costs of repairs. This
does not include the cost of producing the power by turbines or otherwise at Niagara,
which I have not examined or attempted to estimate.
For larger amounts than 1000 horse-power, it would be best to duplicate the plant
required for the former amount.
In my estimation the difficulties, expensiveness and wastefulness of any pneumatic
method of transmitting power for such distances, renders it unworthy of consideration
in this connection.
The generation of an alternating current was then considered particularly
interesting when produced at high potential, because it could be carried far
and economically by the use of a small copper wire.
The difficulties after transmission were the unsurmounted obstacles that
prevented the use of the high-tension current.
The means for reduction of the voltage to safe and useful pressure in
distribution had not been provided; the converters were yet to be designed
and manufactured.
Scientists had theoretically demonstrated to their own satisfaction that
the current could be controlled and distributed safely and economically as
desired for use in motors as power. Their laboratories were working out
designs and engaged in the construction of experimental machines. The results
were encouraging but not commercial. Hope may have fathered the thought
that the machines would be forthcoming; the stakes were high, the field was
promising and the community was expectant; success meant fortunes; there
was an unmistakable demand that lured the inventor; the pioneer promoter
had both courage and confidence. The necessity was recognized as the mother
of the inventions required.
Naturally there were different points of view. The pioneer sought in-
formation and soon learned that conservatism counseled delay, for safety,
while leaders had visions of useful achievements almost within siafht and
grasp.
140
NIAGARA POWER
SPRAGUE ON ELECTRICAL TRANSMISSION
Among the earliest to recognize the economic advantages of transmitting
electric current at high potential was Frank J. Sprague, a recognized au-
thority on electrical matters. His early electric railway studies indicated the
importance of 3000-volt current transmission on the trolley car. He believed
Frank Julian Sprague
d.eng., d.sc, ll.d.
Electrical Engineer
Grad. U. S. Naval Academy, 1878
Mem. A. I. E. E. (Pres. 1892-1893)
that whatever potential might prove necessary for commercial operations
would be adopted and means be found to divert its use from danger by pro-
tective control.
Mr. Sprague made important advances in the use and control of alternating
currents of electricity at high potential, when experimenting in 1880-1881 at
150
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
the United States Torpedo Station at Newport, Rhode Island, when he pro-
posed converters or reversed secondary coils.
Upon official request, he made a report September 13, 1886, to the Edison
Electric Illuminating Company of New York upon the system of supplying
light by the use of alternating current machines and converters ( transformers ) .
After descriptive and mathematical demonstrations of the comparative
value, in capital expenditure, and in the profit and safety of operation, he
stated:
the whole question seems to me to be solved by a comparison, where long-distances are
used, between the two systems, and in this case the alternating current distribution un-
questionably has the advantage.
There is no question in my mind but that this kind of distribution has come to stay and
is going to be a formidable rival to the system of direct supply by continuous currents.
These are significant facts and you cannot too soon take steps to prevent some one
getting in the field ahead of you.
On October 31, 1889, in a report to an eminent physicist, regarding distance
transmission, Mr. Sprague expressed the following views :
I do not think the problem to transmit power by electricity from Niagara Falls to
several points at varied distances up to 20 miles, a sound one, commercially. Scientifi-
cally, of course, it is possible ; but in view of the large amount of work which has to be
done to develop a suitable plant, the risks of accident, the necessity of a secondary
conversion, say in Ruffalo, and the ordinary commercial questions which arise, seem to
take this problem out of the category of those which may be specially relied upon to be
successful. My own feeling is simply this : with ample means, and with an assured
demand for the power, I would not hesitate to transmit any amount of power from
Niagara Falls to Ruffalo, but, although I would feel capable of doing this, if I were at
the same time asked if I would invest any money in the enterprise, I would decline to do
it, because there are so many questions which determine the success or failure of such
an enterprise independent of the mere special transmission of the power between two
points. I think the more serious problem would be the distribution of the power after
having gotten it to Ruffalo. There would be no particular difficulty, I take it, in
building alternate-current machines, say of 10,000 or 20,000 horse-power and trans-
mitting the power at 7000 or 8000 volts potential, but such a potential would not be
allowed overhead in the streets and there would be great difficulty even in carrying it
underground. Converters would be necessary, or a big general receiving motor which
would operate other dynamos.
As regards the use of the converter, there has not yet been produced a good single
circuit alternate-current motor, and as for secondary conversion, where the station
is operated by the large motor, I think the losses are too serious to make it practical.
In short, my position1 in the matter is — I can transmit and distribute this power, but
i Sometime later Mr. Sprague advised the Edison interests, in a formal report, that they should emhark
actively in development along alternating-current lines to meet the problems of the transmission of
energy over long distances and to carry on this work simultaneously with the development of their con-
tinuous-current system.
151
NIAGARA POWER
I think it a problem so uncommercial, in view of the attendant difficulties and risks, that
it is better to keep out of it.
PROFESSOR ROWLAND ON POWER TRANSMISSION
It being recognized that the further discussion of the relative values of con-
tinuous and alternating currents for commercial purposes involved serious
Henry Augustus Rowland
PH.D., LL.D.
1848-1901
Physicist
First Director of the Physics Laboratory
of Johns Hopkins University
questions as to danger, control, efficiency, capital outlays, expenses of mainte-
nance, and knowledge of the electrical science in its latest manifestations, the
services were secured, about October 1, 1889, of Henry A. Rowland, physicist,
of Johns Hopkins University of Baltimore, for advice in the investigation
and development of the enterprise.
152
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
In submitting the problem to Professor Rowland the bankers outlined their
position as follows:
While it was generally understood that the development of the transmis-
sion of power by electricity had proceeded recently with great rapidity, no
definite information seemed available to justify investments in hydraulic
power upon the assumption that the science of long-distance electrical trans-
mission of power had reached a commercial basis. The main questions were
as to the economical transmission of power and light for commercial purposes,
and the adoption of a hydro-electric system suitable for the enormous amount
of Niagara power available and the conditions of the demand therefor. The
progress attained in the science of electricity, and the state of the art of its
application, were conditions that the bankers wished to understand before
capital should be invited to participate in the venture proposed.
Professor Rowland undertook a report considering, first the general theory
of the subject of transmission of power to great distances with respect to
economy, etc., after which, he stated:
I would treat of the means at our disposal for carrying out the theory. This latter
would include a discussion of the different systems in use at the present time. But the
great distance to which the power is to be carried makes an entirely new problem for
the electrical engineers.
That power can be transmitted to a great distance by electricity and with reasonable
certainty is a matter well determined at the present day (1889). But the practical and
commercial problem is of a different nature from the scientific one and may be stated
thus :
At what distance from cheap water-power can such power, transmitted electrically,
compete with steam in cost and certainty of operation?
To assure certainty of operation, especially in competition with steam-
power, Professor Rowland recommended bare copper wires on a pole line,
or overhead system of transmission, instead of the use of underground cables
carrying high potentials.
He stated that the method of electric transmission by alternating currents
had great possibilities, and many persons thought it the method of the future.
The higher the potential, the greater the economy, but the greater the dangers
of its use. He considered the limit at the state of the art of its control at that
period to be 3000 volts at the dynamos, and at the motors about 2000. At that
time, he said, the alternating system was not a practical success. In case of
distance transmission, however, of electricity for both lighting and power use,
high-tension currents must be employed.
In the use of the continuous current for which he presented a plan for
transmission to Tonawanda and Buffalo, he described the method of coupling
153
NIAGARA POWER
the dynamos in series to obtain any potential desired, and recommended the
Edison type of machine as the best adapted to this purpose, as such machines
could be insulated to produce successfully 1250 volts, but were seldom con-
structed in this country of higher power than 250 horse-power.
After presenting several systems for the transmission of continuous current
generated in a central station at Niagara Falls to local users and to Tona-
wanda and Buffalo, Professor Rowland gave the following summary of his
conclusions in his study of the Niagara problem :
1. That the wire rope method of transmitting power was best and cheapest up to a
mile or even two miles, when possible to employ it.
2. That at two to five miles distance electric transmission could compete with steam-
engines of all powers using coal, and that it would pay the consumer to adopt it in all
cases where his engine was not of the very highest type and new. In this latter case
he would probably wait until his boilers wore out.
3. That at Tonawanda competition would be successful with engines up to nearly
1000 horse-power, provided coal were the fuel, and not furnace gases or the refuse
from sawmills.
4. That at Buffalo it would pay the owners of 100 horse-power engines to throw them
away only if they were old and poor, and that difficulty would probably be found in
inducing them to do so until the electrical scheme had been working for years and had
proved to them that electric power is as certain as steam. Below 50-horse-power units
the competition with steam would probably be successful, provided enough horse-power
could be sold, which he considered doubtful. With enterprising business management,
the scheme might succeed, but there was much uncertainty about it.
5. That there was very little danger of broken communication, except from storms
of the worst character or by malicious persons. As iron poles, near together, had been
used in his project for the main lines, only the most violent storms acting on frozen
sleet hanging to the wires could break them down, and this danger could be diminished
by using silicon bronze instead of copper for the wires, or by making them fewer in
number and larger. As to injury from malicious persons, the danger of instant death
would prevent all but the most persistent persons from interfering. Undoubtedly, proper
insulators could be devised to defy the weather but not without trouble and experiment
at the high potential used.
6. That no electric company should be allowed to carry out such a scheme, as he did
not believe any of them were prepared for it or had the highest class of electricians
capable of dealing with such a problem, who were not already engaged in their own
personal work to such an extent as to keep them from devoting their time to such a
project. The proper way would be to engage an electrical engineer at a high salary
to stand between the company and the electric manufacturers. Such an engineer would
save his cost many times. Let him spend six months or a year studying the matter and
find how much power he was certain of selling in the different places and at what price.
Then put up a plant capable of enlargement and work it a long enough time to be
154
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
assured of success. Then enlarge the plant, first erecting machine shops for the manu-
facture of dynamos and motors unless very good terms could be made with the electric
companies. A portion of the profits could then be derived from the sale of motors to the
consumers of power. In this way, with a competent electrician, and economical as well
as active business management, he believed a success might be made of it. At all events,
the capital necessary to try the experiment would not be excessive, while the dynamos
and copper wire, which constituted the greater portion of the expense, would always
meet with a ready sale.
7. That no step should be taken before canvassing the two cities and the surrounding
country and finding how much power could be sold and at what price.
Professor Rowland stated that he had used potentials no higher than those
of many electric light wires in all large cities, and believed they could be
used with some little trouble. He thought it might be well, however, to take
into account the recent agitation with reference to the subject and consider
the jDossibility of laws being passed to prevent the use of high potentials, as
they had already been in England, or to force the system underground as
in New York.
MR. HERSCHEL1 ON POWER DEVELOPMENT
After a careful examination, with the personal assistance of Dr. Morton,
of the questions involved in the papers submitted with the prospectus, the
bankers sent the documents to Clemens Herschel, hydraulic engineer, for a
report upon these plans from the standpoint of the hydraulic engineer and of
the manager of water-power property.
Mr. Herschel referred, in his report of August 28, 1889, to his long famili-
arity with the conditions prevailing at Niagara, and made the following com-
ments upon certain features of the project submitted for his consideration.
Comparing with the mill-power developed at the manufacturing districts
in New England, he considered the total provision of about 300 acres at
Niagara Falls quite insufficient for the local utilization of 120,000 horse-
power. The average power in use at Holyoke in 1890 amounted to less than
200 horse-power per acre.
He considered the "income assured" in the prospectus entirely unreliable;
based upon the cost of steam-power from coal, such income could not be ob-
tained. The prices quoted varied from $2 to $65 and $83.33 per horse-power
per annum and represented such irregularities in calculation that they also
suggested uncertainties and doubt as to their origin and reliability.
Although Mr. Herschel recognized that improvements and inventions were
following each other so rapidly in the electrical art, that even electricians were
doubtful of the costs of Niagara power transmitted to Buffalo, he felt justified
1 See portrait, Chapter XXVIII, Volume II.
155
NIAGARA POWER
in assuming, on the basis of a comparison with the cost of steam-power, that it
would be worth at least $30 per electric horse-power per annum in that city.
He considered the transportation facilities at the site in question certainly
superior, and Niagara a very favored place for freight rates.
In view of 'the years required for the establishment of a manufacturing
community, Mr. Herschel suggested the construction of smaller works than
those proposed. "I think," he stated, "it is characteristic of water-power ad-
ventures, that they require a large outlay before any income can be expected ;
and even upon completion of the work the income increases slowly, from small
beginnings up to profitable proportions. I think that the plans at Niagara
Falls, if carried out prudently, would be profitable also, but not right away."
DR. SELLERS' ' EARLY REPORTS
After careful inquiries for an engineer of broad experience in mechanical
and electrical problems, and free from professional association with any
electrical manufacturing company that might make it difficult for him to
render impartial decisions, Coleman Sellers of Philadelphia, was engaged
about October 1, 1889, to investigate the conditions at Niagara Falls, to
advise as to the development of power and to consider the relative merits of
the systems available for local and distant use, the extent of their commercial
application, their economies as compared with steam, and their practical
application to the project for the development of Niagara power under some,
if not all, of the conditions of the Evershed plan.
Dr. Sellers made three formal reports during that period to January 1,
1890, from which date his services were permanently established as consult-
ing engineer of The Cataract Construction Company.
He expressed the opinions:
1. That the Evershed project was practicable and, under judicious management,
would prove economical in the production of power. As presented by the prospectus
and map, it was, in effect, simply an idea, that might prove advantageous to work out
under the guidance of the highest attainments in engineering.
2. That there was a reasonable certainty of transmitting the power as electricity 20
miles, for profitable sale at the point of delivery, at less than the cost of steam-power
generated from coal at the same place.
3. That other methods of power transmission were in successful use besides the usual
shaft-and-belt transmission, but their economy was limited in distance, varying accord-
ing to special conditions, within a radius of about 5 miles. Mention and brief descrip-
tions were given of transmission by telodynamic, hydraulic and pneumatic methods.
Because pneumatic transmission was being replaced in various mining operations by the
1 See portrait, Appendix A, Volume I.
156
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
use of electrical methods, these systems should be very carefully studied, as they were
promising and the machines for their use becoming available with excellent results.
4. That large factory operations were now conducted by the use of large steam-
engines, which, notwithstanding the known loss in transmitting power by line shafting,
gave better results than many small engines scattered about the works, each directly
driving its own machines. "Electricity seems to court division, and small motors at-
tached to the machines may do better than a combination of large motors at one place
giving motion to shafting after the manner of large steam-engines."
5. That this enterprise would supply the cheapest water-power in the largest quanti-
ties that had ever been produced, and this with an element of unusual stability.
6. That much economy in expenditure of capital, as well as in the operation of the
plant, might be secured by skillful engineering, in determining the velocity of water in
the discharge tunnel or tail-race and intake canals, and in the design of hydraulic
machinery.
7. In establishing prices for power it should be constantly borne in mind that,
although power was then available in manufacturing centers, at about $16 for 12 hours'
use, even at the same price Niagara power would be much cheaper because it would be
for 24 hours' use, and no provision would need to be made for depletion of reservoirs
or repair of retaining dams.
8. That it would be advisable to keep in view the chance to obtain control of the
hydraulic canal at Niagara Falls.
9. That geological conditions and the records of river flow should be critically ex-
amined. Local observers of wide experience and the oldest residents had been inter-
viewed regarding the lasting qualities of the limestone rock and shale, through both of
which the tunnel would probably pass. The consensus of opinion was that the shale
would wear well and the tunnel need no lining.
10. That the probable cost of the discharge tunnel, inlet-canal, one cross tunnel, ten
wheel-pits, and accessories, was estimated at about $2,000,000 for the first section of
the project, to develop 20,000 horse-power. This total included ten double water-wheels
of 1000 horse-power each, and cables from wheels to surface to the first jack-shafts,
also the cost of the land, water-rights, franchises and property acquired.
11. The uniform distribution of 2000 horse-power to each wheel-pit, and the carry-
ing of this in blocks of 1000 horse-power to each of the mill-sites, one on either side of
the pit, would enable the property to be rented to advantage even to small users, as the
rope transmission in some cases would make it possible for whole rows of small indus-
tries to take the place of any one large factory.
The later reports of Dr. Sellers included suggestions for the letting of
contracts for tunnel and other excavations and for the reduction in the number
of inlets and changes in their location, that would lessen the cost of construc-
tion of a first section of 20,000 horse-power development and permit the
occupation of necessary space for railroad tracks and other service facilities
of the mills.
157
NIAGARA POWER
In commemoration of Dr. Coleman Sellers, and as a memorial of his wise
counsel and valued services to the Niagara enterprise, this history is dedicated
to him by the author. Lewis B. Still well has written a tribute to his memory,
which appears as Appendix A to this volume.
CONCLUSIONS OF PRELIMINARY INVESTIGATION
These and other reports from hydraulic and electrical engineers of varied
experience and recognized professional standing, together with numerous
personal conferences on the same subjects, brought definite -views to the
financial syndicate of the Evershed project.
Upon a careful analysis of the conditions that obtained at Niagara, it
became apparent that commercial considerations required the modification
of the Evershed plan.
In view of the authority conferred by state charter for use of the waters
of Niagara River without limitation,1 and the general conviction that a
market could eventually be found for a large amount of power, it seemed
clear that success lay in the direction of a development upon an unprecedented
scale.
The uncertainties were mainly financial and engineering. A course must
be found which would retain the advantage to be derived from the production
of power in vast quantities, but which would still keep the capital expendi-
tures within such bounds that provision for fixed charges could be made
readily, after construction, out of receipts during the period of growth. It
was recognized that a large and ready market was Avaiting at Buffalo, with
its population of 256,000, but in that direction the way was opposed by
intricate scientific and economic problems that might prove very difficult
to solve.
Since it was evident that a discharge tunnel was essential to any plan that
might be adopted, and the engineers advised that it be constructed, at the
outset, of sufficient capacity to provide for an eventual development of a
large amount of power, the entire cost of this tunnel was necessarily included
in providing for the initial outlay of capital.
As there appeared to be a good prospect of disposing of 20,000 horse-power
locally at not less than $9 per annum for 24-hour use, an annual gross income
of $180,000 from an initial development of that capacity seemed assured
within a reasonable time. This would suffice to carry the $2,000,000 cost of
such an installation as estimated by Dr. Sellers, and it was therefore
considered prudent to adopt this program for the commencement of
operations.
1 Charter amendment of May 12, 1892, restricted water use to 200,000 "effective" horse-power.
158
EVERSHED PROJECT— INVESTIGATION AND MODIFICATION
It was recognized by all persons in interest that there were no precedents
to follow and that the special problems at Niagara were only to be worked
out practically and commercially by the aid of the most advanced develop-
ments of several branches of engineering, operating in close accord. Because
of their novelty, every detail should have deliberate consideration from all
possible points of view, and much time should be provided for this study. New
designs and important inventions or discoveries were necessary. The experi-
ences of others, particularly those of the ingenieur-constructeurs of Switzer-
land, where water-power is the chief product of the country, were to be sought
for guidance in preparing plans at Niagara. There were various forms
of power transmission in use abroad to be studied, especially the elec-
trical methods that were then receiving much attention from scientists and
engineers.
It was not deemed advisable, however, to await the solution of all these
problems before proceeding with the work. Whatever forms of development
and transmission might be adopted, they all would require the facilities of a
water-inlet and a water discharge, and therefore these, as a hydraulic system,
were prime necessities. As much time would be required for preparation,
surveys, geological examinations, study of surface conditions, negotiations
for rights and privileges, development of tunnel and inlet designs, etc., it was
determined to proceed with the enterprise, provide the money estimated as
necessary for the construction of the first section of the project, and make
definite arrangements to secure complete information as to the state of
the arts of hydraulic development of power and various methods for its trans-
formation and utilization.
CAPITAL SUBSCRIBE!) FOR THE INAUGURATION OF THE ENTERPRISE
Action was taken in accordance with these views on January 16, 1890. A
syndicate subscription was invited and $2,630,000 was received, payable in
cash as required for construction purposes. The details of these financial
operations will be found in subsequent chapters.
At a meeting of the "money subscribers," held February 6, 1890, after
consideration of the reports of their engineers, it was resolved that :
The Cataract Construction Company be and it is hereby authorized and requested
now to proceed to the preparation, execution and performance of a contract with The
Niagara Falls Power Company, such as is contemplated in the agreement (syndicate
subscription) of January 17, 1890.
The president of the company, Mr. Adams, undertook the foreign consulta-
tions and investigations of scientific and engineering character and the chief
engineer, Dr. Sellers, proceeded with the preparations for construction on the
159
NIAGARA POWER
preliminary plan proposed, and organized an engineering staff for his assist-
ance. The form, size, location, grade and details of construction of the tunnel
were to be determined, specifications prepared, and contracts negotiated.
Accurate surveys of the land with the view of possible purchase, and of the
lands under water with riparian rights, were ordered prepared under the
general direction of John Bogart, the state engineer.
The statistics of the relative number of employees, horse-power and acreage
used in various industries established in New England, New York and
vicinity, prompted the plan to purchase about 1000 acres in addition to the
550 acres already under control.
The raw materials to be used and the product of their manufacture required
convenient and prompt transportation. To facilitate this, with competitive
freight rates, "in transit" or otherwise, the larger portion of these 1000 acres
for purchase were designated near the railways of the New York Central
and the Erie Railroad companies, upon which lands (166 acres) the Niagara
Junction Railroad would be constructed by the cataract company to assure
these important commercial advantages for the new industrial community.
Certain lands (368 acres) were selected for the development of the
residential village of Echota, subsequently constructed by The Cataract
Construction Company, near the center of the large acreage subsequently
purchased, that would be central to the industrial growth, and sufficient for
extensions as the populations increased.
The system for the supply of potable water to the people of the town of
Niagara Falls was insufficient for increase of population and the water was
not satisfactory in purity. Plans were made to overcome these unfavorable
conditions, and the stock, property and assets of the Niagara Falls Water-
Works, the local company, were acquired in January, 1890, and provision
made for the extension of its franchise and system and the purification of its
supply.
Nearly all the rights-of-way for the discharge tunnel and the inlet-canal
were acquired at this time. To assure continuity of service the recom-
mendation of the engineers that the right-of-way for a second discharge
tunnel should be acquired was adopted, and negotiations therefor were actively
pushed and successfully concluded.
The extension of the trolley line to the proposed new village and the indus-
trial plants was advocated and assured.
The harnessing of the waters of Niagara had at last been undertaken with
the support of adequate capital, and the great enterprise was well under way.
160
EVOLUTION OF THE
CENTRAL POWER STATION PLAN
1890
Chapter IX
While prosecuting these investigations I received
an impression that the method we had planned (direct
driving of mills by individual wheels) and were on the
point of carrying out was a mistake. ... I came to
the conclusion that our true way possibly might be
to build this tunnel and develop the whole power in
this one central station, transmitting the power to
different places.
Edward Dean Adams
Brown's Hotel
June 18, 1890
EVOLUTION OF THE
CENTRAL POWER STATION PLAN
1890
CHAPTER IX
THE LAUNCHING OF THE PROJECT
THE subscription, in January, 1890, of abundant funds for initial con-
struction marked the transition from investigation to determine whether
the tunnel project for power development at Niagara should be undertaken
or not, to the period of constructive planning.
An outstanding result of the preliminary investigation was the revelation
that there were no hydraulic power developments in existence, which would
serve as examples to be followed in the Niagara undertaking. The old mill-
over-the-wheel-pit plan would have involved prohibitive construction costs
for excavating canals and shafts and tunnels in hard rock, and it would not
deliver the power where and in amounts as it was wanted.
New methods were called for; power was to be produced on an unprece-
dented scale ; there should be fewer canals and fewer water-wheels than were
originally proposed ; the wheels should be larger ; there should be means for
distributing power locally over a few hundred yards, or possibly a mile or two,
and there should be means for transmitting power to Buffalo. But nothing
in existence was adequate to accomplish these results.
There was confidence that these problems could be solved and it had been
determined to proceed with the undertaking as a turbine development, by
means of a short inlet and the shortest possible tail-race tunnel.
As desirable adjuncts to this plan, the right-of-way for an additional tunnel
had been secured; a comparatively large area of land had been purchased,
and various public utilities had been projected, that were essential to the
residence and employment of what would constitute an important increase
in the population of the community.
A special charter of The Niagara Falls Power Company had been secured,
that had been issued by the State of New York to the Niagara River Hy-
draulic Tunnel, Power and Sewer Company,1 as authority for and encourage-
ment of the Niagara development.
A satisfactory charter of The Cataract Construction Company had been
received from the State of New Jersey for the construction of works of im-
provement. Other charters and franchises were in process of acquisition.
Capital had been subscribed for an amount, $2,630,000, considered ample
for the first section, or unit, of the hydraulic system, as well as for lands and
their improvement.
1 Name changed in 1889 to The Niagara Falls Power Company.
1C3
NIAGARA POWER
An engineering organization had been formulated, and preparation made
for surveys, designs, plans and construction.
Central stations or power-houses were the preferred plans for development
of power, provided an adequate system of power distribution could be found,
either by cable drive, compressed air, water under pressure, or by electric
currents.
The primary turbine units, it was believed, should be unusually large and
their complementary machines, whether pumps, compressors or generators,
should be mounted on the same rotating shaft so as to constitute a unit of
power, developed at the foot and distributed at the top of a single column.
The immediate problem was to determine the form, size, location, grade
and details of construction of the tunnel. These matters were taken up by the
board of engineers of the company for the purpose of preparing specifications
and negotiating contracts for the commencement of the important work of
rock excavation for tunnels and inlet.
INVESTIGATION OF HYDRAULIC MACHINERY AND
POWER TRANSMISSION IN EUROPE
While these preliminaries were being studied and plans developed at
Niagara, the president of The Cataract Construction Company was in Eu-
rope, where he arrived in February, 1890, in quest of information as to the
state of the science of power development and the art of its transmission.
Anticipating that questions would arise regarding electrical transmission,
particularly as to the use of direct or alternating current, he sold, prior to
departure, his shares and resigned his directorship in the Edison Electric
Illuminating Company of New York, in order to remove all question of
personal interest, which might restrict the freedom with which information
might otherwise be supplied.
There were three distinct lines of information inviting research; first, by
reading technical publications ; second, by correspondence with scientists and
engineers ; and last, by personal conferences with the ingenieur-constructeurs
of France and Switzerland.
Several months were devoted to the collection of books, pamphlets, journals,
the reports and proceedings of engineering societies, photographs and plans,
all of which were carefully studied and their appropriate suggestions and
statements noted for reference in case of need.
Switzerland, an industrial country, dependent, through lack of fuel, upon
its never-failing waterfalls, had made hydraulics and mechanics special
features of its educational system and had developed leaders of those sciences
164
EVOLUTION OF THE CENTRAL POWER STATION PLAN
and masters of those arts. At that period, they had won international recog-
nition and could point with pride to engineering works abroad as well as at
home, in evidence of their skill and experience. Therefore it was to Switzer-
land and its engineers that special attention was given in the first communi-
cations regarding prime movers.
To the query, "What books have you published about water-wheels?", it
was answered, "A few books only, but we have built many turbines for our-
selves as well as others," explaining, "this is natural, because water-power
and scenery are our national resources, and turbines and hotels represent
some of our most successful industries." Upon the suggestion of utilizing
Niagara Falls, the Swiss manufacturers promptly manifested sympathetic
interest. Their mountains were grand and their falls were numerous and
beautiful, but they could not be compared with the majesty and power of
Niagara, that they believed Swiss turbines should control.
A collection of Swiss trade circulars, carefully prepared and fully illus-
trated, many being in fact elaborate treatises upon turbines, pumps, com-
pressors and other departments of mechanics, was soon acquired and eagerly
studied.
The names of the most prominent and experienced ingenieur-constructeurs
in Switzerland were obtained through assistance of the consulates of the
United States at Geneva and Zurich. Subsequent correspondence brought
records of experience and current work and led to personal visits and con-
ferences. Among such correspondents, several of whose works and installa-
tions were visited, were the following.
Escher, Wyss & Company, of Zurich, who had constructed about 2000
turbines of a total of 120,000 horse-power, naturally received careful atten-
tion. Among their important water-wheel installations were cited the utili-
zation of the Rheinfall, near Schaffhausen, of the Rhone at Geneva, of the
Zurich River, and of the Rhine near Rheinfelden, by 15 turbines of 1000
horse-power each, under a head of 7 metres.
Faesch and Piccard, of Geneva, had designed and constructed several
hydraulic works for power transmission of particular interest, one by cable at
Bellegarde, one by electricity at Oyonnax, and one by water under pressure
and a hydro-electric station, both at Geneva.
Another firm of importance was Theodor Bell & Cie., of Kriens, Lucerne,
that had recently completed the hydro-electric station for the city of Berne
for electrical lighting.
Joh. Jacob Reiter & Company, of Winterthur, were recognized as among
the long-established and successful makers of turbines, whose co-operation
165
NIAGARA POWER
was sought in preparation for a scientific commission to consider the hydraulic
question.
The Machine Works ( Maschinenf abrik ) of Oerlikon, near Zurich, of which
Chas. E. L. Brown was then electrical director, was awarded the only Grand
Prix for dynamos at the Paris Exhibition of 1889, in competition with several
American exhibitors of electrical machinery. It was stated that within a few
years they had made a total of more than 20,000 horse-power of electrical
machinery, including motors of 400 horse-power and generators (for the
production of aluminum) of 000 horse-power, which were reported to be the
largest in the world. Generators of about 75 horse-power, aggregating 800
horse-power, were being supplied for hydraulic power stations in Chile for
supplying power by direct current a distance of several kilometers for the
drilling of tunnels in the construction of the trans-Andine Railway. Alter-
nating-current apparatus for transmitting current considerable distances,
principally for lighting, was an important feature of the work at Oerlikon, but
of particular interest was the project for the transmission of several hundred
horse-power for more than a hundred miles for the Frankfort Exhibition to
be held the following year.
Among power transmissions by hydro-electric methods that were visited
were those at Charminet, on the Ain River, 7^ kilometers to Oyonnax, where
the great advantage of electrical power was seen in the facility of its sub-
division for small industries requiring only from two to three horse-power.
This was designed and constructed by Swiss engineers.
Domene, Isere, was also visited, about 5 kilometers from a water source,
difficult of access, and practically inaccessible in winter. This plant of 200
effective horse-power was designed by A. Hillairet, a French engineer, of
Paris, for the operation of the Chevrant Paper Mill, and was considered in
all respects a most interesting and successful project. Power was transmitted
by a direct current of 70 amperes, the average voltage being 2850.
There were a number of other, smaller hydro-electric power transmission
plants in Switzerland, then in operation, several of which were installed to
replace rope or cable transmissions, requiring renewal, or the substitution of
electric service to assure continuity of power that was not obtained by the
telo-dynamic method of transmission.
AN ELECTRIC POWER PIONEER IN FRANCE
In France, hydro-electric questions were receiving more attention in electric
than in hydraulic studies. Foremost among the early workers was Marcel
Deprez. The progressive historical steps which he had taken in the develop-
ment of direct-current power transmission is summarized in a letter to
166
EVOLUTION OF THE CENTRAL POWER STATION PLAN
Mr. Adams, clearly written on note paper by his own hand. The letter
follows :
(Translation)
Friday, May 23, 1890
Monsieur
Answering the letter that you have been good enough to write me, asking for the
names of the publishers of my works on electricity, I beg to say that I have not written
any systematic work dealing with that science.
My works have been along two lines :
1. Theoretical research work into the transmission of long-distance power, which
appeared in the Proceedings of the Academy of Science since 1880, and also in the
Journal de la Lumicre Electrique from 1880 to 1886 and were reprinted in the scientific
journals of the two hemispheres, where they gave rise to most varied and contradictor}'
discussion and comment.
2. My experiments by which I tried to test the correctness of my theories, being in
chronological order :
Munich experiment, in September, 1882. Power transmission for a distance of 57
kilometers, by an iron wire, 4*/> millimeters in diameter.
Experiment at "Chemin de Fer du Nord" shops, February and March, 1883.
Experimental line between Yizille and Grenoble, distance 14 kilometers; copper wire
of 2 millimeters diameter. Power received 7 horse-power ; efficiency 48 to 60 per cent.
Experiment which took place in 1886, between Creil and Paris. Distance 56 kilometers ;
diameter of copper wire 5 millimeters. Power received 52 horse-power. At the final test
there was received 80 horse-power with the electromotive force at Creil reaching 9300
volts. Efficiency 45 per cent.
All these experiments were checked by an Official Commission whose full reports were
published in the Proceedings of the Academy of Science (excepting that of Grenoble-
Vizille), and in practically all the scientific journals of the world. These latter, however,
often gave inaccurate reports. The Official Commissions were composed of the most
eminent authorities of our country.
You will find all possible information covering the two first experiments (Munich and
"Chemin de Fer du Nord") in a little volume published by Bernard-Tignol, 45 Quai des
Grands Augustins, Paris, entitled Le Transport de la Force by Japing.
As regards the experiments at Grenoble and Creil, the reports covering those were
printed separately, and I have the honor of forwarding you a copy hereof.
Finally, in 1889, I installed at Bourganeuf (Department of the Creuse, France) a
power transmission which has been operating for a year and is showing remarkable
results, by the strength of the installation, by the extremely small number of operatives
(one man at the turbine that drives the generator, and one man, with an assistant, at the
receiving end of the line) which meets all needs, and, finally, by the absolute regularity
of operation. The distance is 15 kilometers, the wire 5 millimeters. I published complete
details of this installation in La Lumiere Electrique, September, 1889.
167
NIAGARA POWER
I shall publish shortly a description and a sketch of the 500 horse-power unit that I
had constructed for the Exposition of 1889 and that I have been unable to sell as yet,
by reason of its power being excessive for the ordinary factories.
Si vous desirer d'autres renseignements je me ferai plaisir de
vous le donner.
Veuillez agreer Monsieur l'assurance de mes parfaits con-
sideration.
Marcel Deprez
Marcel Deprez Explaining in 1883 His System of Electrical Transmission of
Power from Paris, 8 Kilometers, to the Northern Railway Shops
Resume of the Marcel Deprez demonstrations of power transmission
referred to in his letter and the accompanying text.
Dates Locations Distances in Kilometers
1881 — Paris Exposition Local
1882 — Munich Experiments 57
1883 — Shops of the Northern Railway of France 8
1884— Grenoble-Vizille 14
1886— Creil-Paris 56
1889 — Bourganeuf Transmission 15
168
EVOLUTION OF THE CENTRAL POWER STATION PLAN
In 1881, in the Palace of Industry at the Paris Exposition, M. Deprez
showed his electrical work for the first time. The power generated was to
drive 27 different pieces of apparatus including sewing machines, etc. Each
of these machines had its own little electric motor.
One of M. Deprez's first theoretical pieces of work was published in the
August 24, 1881, issue of La Lumiere Electrique and consisted in showing
that with the existing machines, with the aid of a transformation, one could
effect long-distance transmission. The calculations were based, it was stated,
upon experiments made by English engineers at Chatham.
It was at the beginning of the year 1882 that the committee having charge
of the organization of the electrical exposition at Munich communicated with
M. Deprez. Making use of an existing telegraph line, M. Deprez effected a
transmission of 57 kilometers. It seems that the committee at Munich had
not much confidence in the success of the experiment, but when at a given
signal the machines got into motion, great applause greeted the feat. A series
of accidents, due to the fact that the machines had been built for laboratory
instead of for practical purposes, caused the machines to be put out of order
after eight days of satisfactory performance.
In continuation of experiments in transmission, an electric machine was built
about the month of January, 1883. After searching for a convenient place to
try out this machine, the Compagnie du Nord placed a transmission line at the
disposal of the experimenters. It was here, in the shops of the Northern
Railway of France that a transmission of 8 kilometers was obtained in 1883.
The special committee appointed had not the means of judging the eco-
nomic value or the future possibilities of the results obtained, but proposed to
the Academy of Sciences that Marcel Deprez be congratulated on the im-
portant progress which he had made.
The Journal de la Lumiere Electrique of January 5, 1884, refers to power
transmission by Marcel Deprez, showing that his theory of the transmission of
power was verified by his experimentation, as well as by official reports.
The experimental transmission of electric power by continuous current
from Creil to Paris was made by M. Deprez in 1886. A railway locomotive
supplied the primary power for the electric machine that generated 116 horse-
power and sent the current 56 kilometers (35 miles) to an electric motor at the
railway station of La Chapelle, in Paris. A scientific commission,1 composed
of engineers and members of the Academy of Sciences, was selected, by
1 See L'Electrician of August 21, 1886, Report of Commission to L'Academie des Sciences on "Le trans-
port de grandes forces motrices" by Marcel Deprez between Creil and Paris.
169
NIAGARA POWER
request of the Messrs. Rothschild, who were financing the experiment, to
report the results obtained by M. Deprez.
The current of 6200 volts was transmitted on an overhead line of silicon
bronze wire of a resistance of an ordinary telegraph wire, with an efficiency of
about 45 per cent. Both electric machines were of the Gramme ring type.
Although M. Deprez expected this transmission to show an efficiency of
50 per cent, and there were unexpected difficulties of faulty insulation in
machines and line to overcome, the commission announced the result as
remarkable and in the name of science and industry extended its hearty con-
gratulations to M. Deprez upon the admirable results he had obtained.
The editorial review of this report by U Electrician states that after waiting
five years for important developments, "the Creil-Paris experiment does not
show any practical results and that such results may still be awaited for a
long time."
The hydro-electric transmission in 1889 of light and power from Les Jar-
rauds Falls on La Maulde River, 14 kilometers to the city of Bourganeuf
(Creuse, France) was designed by M. Deprez and may briefly be described
from his detailed account.1
Hydraulic head — 31 meters.
Turbine of horizontal axis and 130 horse-power connected by belt with the
dynamo.
Speed of turbine — 150 revolutions per minute.
Speed of generator — 650 revolutions per minute.
Voltage of generator — 5 to 5^/o volts at speed of one revolution per minute.
Generator of 100 horse-power capacity.
The line wire was 5 millimeters in diameter of bar silicon bronze and carried
on posts with porcelain insulators similar to an ordinary telegraph
line ; with 23 ohms resistance for the 14 kilometers.
The motor was identical with the generator. The motor drove two lighting
machines of the Gramme type that produced 130 volts and 250 amperes
each.
These experiences of M. Deprez are those of a pioneer in power trans-
mission, and to him should be accorded high honor. But in magnitude they
were trivial compared with the Niagara project and the method of trans-
mission by direct current at constant value was not suited to the requirements
of a large power system.
1 See La Lumtire EUctrique, September 21, 1889.
170
EVOLUTION OF THE CENTRAL POWER STATION PLAN
SUMMARY OF POWER CONDITIONS IN EUROPE
The largest hydraulic and electric machines in practical use at that period,
1890, anywhere in the world according to their makers, were the
1000 horse-power generator, direct current, for lighting, constructed
by Siemens and Halske of Berlin.
600 horse-power generator, direct current, designed by Chas. E.
L. Brown of the Oerlikon Works, Switzerland, for aluminum
works.
1000 horse-power single-phase alternator, direct connected, con-
structed by Ganz & Company, of Budapest.
14 turbines of 1000 horse-power each, made by Escher, Wyss &
Company, of Zurich, for their installation on the Rhine near
Rheinfelden.
The electrical transmissions of power which seemed most notable and signifi-
cant as the result of the European visits were the following:
Marcel Deprez, the transmission of 82 horse-power, Bourganeuf to Paris,
15 kilometers, direct current, 1889.
Oerlikon Works, the transmission of electric power from 12 generators of
about 70 horse-power each for drilling tunnels on the trans- Andine Railway
in Chile, a few miles, direct current, 1891.
Oerlikon Works, the transmission of 300 horse-power, 108 miles, by alter-
nating current, from Lauffen to Frankfort, proposed in 1890 by C. E. L.
Brown for the exposition the following year.
It appeared to the American seeker after information that the greatest
progress in power transmission was to be found on the continent where there
were numerous examples of power transmission by direct current and where
the possibilities of the use of alternating current for long-distance transmission
for power as well as lighting were not only recognized but were being actively
undertaken on a magnificent scale. There was a progressive attitude among
engineers and manufacturers of the highest responsibility, which gave promise
of continuing the development in which succeeding years produced greater
achievement in amount of power and distance of transmission.
Other methods of transmission of power were in evidence and had their
strenuous advocates. Rope or cable transmissions were numerous in many
countries. They were limited to about 3 miles in effective use, were irregular
in power delivery, and their users were commencing, when in need of repair
or replacement, to change that system for electric transmission.
171
NIAGARA POWER
Power transmissions and distributions by compressed air or water were
few, and those of comparative importance in power and in distance of trans-
mission in England, France and Switzerland, had not, with few exceptions,
shown sufficient financial success to attract additional capital.
A very careful survey of this situation after persistent research, gave con-
vincing evidence that the power situation was undergoing a distinct change
in methods ; from fuels of increasing costs and irregular deliveries, to nature's
provision of water, that was wasted continually and in many cases required
only conduct to storage for use as desired. Practical methods of economical
transmission of mechanical power derived from falling water gave at once a
market for almost every waterfall, varying in value according to the cost of
utilization and the proximity of users.
It thus became apparent that the cataract company was duly warranted
in proceeding with its plans for a hydraulic development of power, and that
the facilities of Switzerland and France were ample for manufacture of the
largest units desired. In no phase of the power problem was there greater
interest nor was the situation progressing more rapidly than in the solution
of methods of transmission and distribution. Hence it seemed that it might
be possible to concentrate still further than was at first proposed the gen-
erating apparatus for the production of the power at Niagara Falls, and
depend more upon the distributing system. If this were feasible, the tunnel
for discharging water from the wheel-pit need not be extended beyond the
single power-house location at which all the power might be developed.
PROVISIONS FOR SCIENTIFIC WORLD-WIDE STUDIES
The situation called for careful study and investigation ; changes in methods
of producing and conveying and using power were taking place which gave
promise of great extension and development; expert service was required;
there was need of attracting the thought of the best scientists, engineers and
manufacturers to the Niagara problem that they might evolve new methods
and new machinery to meet unprecedented conditions.
Two conclusions were reached, namely, that one power-house might suffice
and the tunnel might be shorter than had been proposed, and second, that a
scientific investigation by the representative scientists of the countries most
concerned should be made; these prompted President Adams on May 11,
1890, to send a cable message from Paris to Vice-president Francis Lynde
Stetson, of the cataract company's New York office, stating that
After careful investigation conclude practise here far ahead ours. Recommend defer
execution construction contracts.
Considering inviting American, English, French, Swiss houses to submit competitive
preliminary schemes to commission composed of Sellers, Edison and English, French
172
EVOLUTION OF THE CENTRAL POWER STATION PLAN
and Swiss engineers, one each. Important Sellers meet me London immediately. Cable
views directors.
The cable brought the answer :
Directors present approve your plan. Edison impossible. Sellers sails Saturdaj'
with all papers.
With this encouragement, the development of a scientific symposium on the
utilization of the waters of Niagara moved on apace.
Many previous visits to the three foreign countries specially interested in
this matter, and numerous acquaintances therein of financiers and engineers
of influence and information, facilitated inquiries in France, Switzerland and
England regarding machine constructors of highest rank in responsibility, and
as to scientists desirable and available to represent their nationals.
After presenting this program tentatively in Paris to various circles of
French interests and to visiting engineers from Switzerland, President Adams
went to London, where he consulted various helpful interests and introduced
the subject to Sir William Thomson, with the suggestion that should he be
disposed to accept the chairmanship of an International Niagara Commission,
it would probably be offered him by the directors of the cataract company.
Various names were submitted to him and suggested by him as desirable as-
sociate commissioners. Details of organization and procedure were considered,
and a further conference was arranged for a call with Dr. Coleman Sellers.
In the interview at Cambridge, June 2, Sir William expressed his willingness
to serve as previously suggested.
After a week of conferences and exchange of views, Dr. Sellers and
President Adams went to Switzerland, where they visited together the works
previously inspected by the latter in May and conferred with the representa-
tives of the principal Swiss engineering firms respecting the proposed com-
mission under the chairmanship of Sir William Thomson.
Assurances were received from those invited that they would submit
projects and that they approved of the engineer suggested, Col. Theo. Turret-
tini, as the representative of Swiss industries on the commission.
At the close of this tour through industrial Switzerland with its opportuni-
ties of considering the problems at Niagara with the many engineers in con-
ferences, and after a review of the whole situation with the chief engineer of
the cataract company, its president sent these cable messages to Mr. Stetson,
from
Geneva, June 8, 1890
Am convinced International Commission best course. Sir William Thomson will act
as president. Consider convenience Stetson replacing me abroad during July August
sailing after my return.
173
NIAGARA POWER
Paris, June 10, 1890. No. 1
Sellers concurs decided opinion abandon all tunnel beyond 8000 feet, also all canals
except short surface inlet ; adopt one central station for entire power capacity tunnel
dimensions proposed ; also agree International Commission only plan secure best
methods, recommend pushing commission rapidly.
Paris, June 10, 1890. No. 2
Much valuable time saved if Stetson meet me London by twenty-fourth. Have
arranged conditioned upon directors' approval, International Niagara Commission,
President Sir William Thomson, Sellers, Mascart, Membre Institute, Professeur College
France, Turrettini, Mayor Geneva. Headquarters sessions London. Principal engineers
Europe promise compete. Cost including prizes about thirty-five thousand.
To these messages replies were received by President Adams stating
Directors approve proposed commission and expenditure
and on June 24, after receiving a draft of the invitation to be issued from the
headquarters of the commission in London and from the office of the com-
pany in New York, the cable announced
Directors approve invitation.
The records of the meeting of the directors in New York on that date were
as follows:
Additional letters and cablegrams from President Adams and Dr. Sellers were read
and the action proposed to be taken by Mr. Adams in relation to the International
Commission and invitation of competitive plans and bids were approved and authority
given to issue similar invitation to selected parties in this country.
A fortunate opportunity then occurred for presenting the plans to the
"money subscribers" who were in London. The minutes of the meeting follow :
REPORT OF PROGRESS AND FIRST FORMAL PROPOSAL
OF CENTRAL POWER STATION PLAN
MINUTES OF MEETING OF SYNDICATE SUBSCRIBERS JUNE 18, 1890,
AT BROWN'S HOTEL,1 LONDON, TO CONSIDER PROPOSALS FOR AX
INTERNATIONAL NIAGARA COMMISSION FOR THE GUIDANCE
OF THE SYNDICATE SUBSCRIBERS IN THEIR PLANS
FOR THE DEVELOPMENT OF NIAGARA POWER
On the invitation of Mr. Adams, a meeting was held at his apartment in
Brown's Hotel, London, Wednesday, June 18, 1890, to which were invited
all the parties interested in the Niagara syndicate in London, viz: Dr. Cole-
man Sellers; Vice-president Edward A. Wickes; A. J. Forbes-Leith;
1 See Chapter XXIX, Volume II, for details of memorial established in Brown's Hotel.
174
EVOLUTION OF THE CENTRAL POWER STATION PLAN
Morris K. Jesup ; Alexander Hargreaves Brown, M.P. ; Capt. Francis Pavy ;
C. C. MacRae; Louis Floersheim; Louis Schott; Henry Oppenheim; Lord
Rothschild; Robert R. Symon; W. Brodrick Cloete; Frederick Nettlefold;
Ernest Cassel; Frederick W. Whitridge.
Of these the following named gentlemen were present: Dr. Coleman
Sellers; Edward A. Wickes; A. J. Forbes-Leith; C. C. MacRae; Robert R.
Symon; W. Brodrick Cloete; Frederick Nettlefold.
Mr. Adams stated :
Since my arrival in this country, I have been giving a great deal of attention to this
subject and as I proceeded with my investigations, my interest increased constantly and
finally I think I am an enthusiast on the subject. About two months ago, while prose-
cuting these investigations, I received an impression that the method we had planned
and were on the point of carrying out, was a mistake, but I was not willing to come to
that conclusion without the assistance of some of our consulting engineers, so I cabled
to the other side, suggesting that they should stop work so far as it affected the pro-
longation of the tunnel and the adoption of the plans. In order that you may under-
stand clearly what I mean, I will indicate, by reference to the maps, the course pursued.
The map I now show you is a government map of the Niagara River, giving the position
of the town of Niagara and the falls, and indicating the direction of the flow of the
river. It was the intention originally, to underrun the land of the company by a tunnel
that passed underneath the town of Niagara and emptied into the lower river, this tunnel
being one of sufficient capacity, in length of about 7300 feet, to meet the requirements
of the development of about 120,000 horse-power, but it was not the intention to utilize
that power immediately at the end of tunnel of the length given, but as the power was
disposed of, to continue the tunnel to a total length of 13,000 feet. In order to supply
the various mill-sites which might be scattered over this land extending several miles
along the river, canals would be brought in at intervals. Such are indicated on this
smaller map. These canals would overlie the tunnel and from such canals which were
wide at their mouth but tapered towards their end, minor canals would be led to
various wheel-pits which in turn would discharge into the tunnel. All this pointed to
so great a cost, that it seemed to me advisable to pause before proceeding with such an
investment, and to take advantage of what I had noticed was being done everywhere in
Europe, to concentrate the source of power at some one place and from that one source
of power to transmit it to the factories either upon our own land or the land adjacent
thereto, or in fact to a still greater distance to Tonawanda or Buffalo or anywhere
within the radius of the possible transportation of power economically. By this means,
I satisfied myself that of the various methods of transmitting power, some one, or more
might be adopted that would enable the mill owners to be as perfectly independent as if
they each had their own wheel beneath their mill as originally planned. In other words,
that the power being carried by electricity could be transmitted to the mill and there
operate electric motors that would be as efficient as the best steam engines. The same
obtains in reference to other modes of transmission, whether by rapidly running cables,
by hydraulic power or by compressed air. At all events, I came to the conclusion that I
175
NIAGARA POWER
was right in the idea that the application of modern science on the continent of Europe
had changed the whole methods of hydraulic working and transmission of power, and
that our true way possibly might be to build this tunnel and develop the whole in this
one central station, transmitting the power, as I have already indicated, to different
places. Upon receipt of my dispatch, I was glad to find by the reply that no contracts
had yet been made for the excavation of these canals. I therefore asked that Dr. Sellers
should come over and assist me in determining this question. He came very promptly ;
I met him here in London, where we spent a week or ten days and then proceeded to the
continent from whence we have just returned after a tour in Switzerland and France
where we have been in consultation with all the engineers who are practical men, and I
will now ask him to explain to you the various steps by which his judgment is now,
I believe, in entire accord with my own, as to the best course.
He then introduced Dr. Sellers, who gave a lengthy explanation of the
changes proposed, the reasons therefor and the economies expected. Among
other things, he called attention to the enormous cost of the one canal which
had been designed, primarily, for the utilization of 20,000 horse-power and
ultimately, by a still further extension of the tunnel, to a total of only 48,000
horse-power. He stated that so far as he had been able to judge, it seemed
to him that the cost of this immense excavation, which was a small river in
itself, would go very far towards developing the whole of the 120,000 horse-
power and inasmuch as the shortening of the tunnel would also heighten the
available fall, that could be done by the wheels increasing that fall from 110
to 140 feet, thus diminishing the total volume of water required per horse-
power; that the tunnel as designed would be sufficient to fully satisfy at least
130,000 horse-power developed at one central location; that it was scarcely
worth while to call attention to the still greater saving of doing away with these
many other canals which would have to be added to the first one to complete
the total planned ; that the more he looked into this scheme which was proposed
by Mr. Adams, the more thoroughly he was convinced of its correctness, and
that he had found his labor in this investigation very much diminished by the
very thorough manner in which Mr. Adams had accumulated the facts that
pointed so conclusively towards this method of procedure.
Following Dr. Sellers remarks Mr. Adams explained his plan for an Inter-
national Commission, drawing from the gentlemen present a quite strong
expression of opinion as to the economy with which he had effected so brilliant
a combination of talent as was expressed in the union of the gentlemen repre-
senting England, France and Switzerland.
An animated discussion of the subject by the gentlemen present, who asked
many questions and seemed well satisfied with the replies, was unanimous in
approval of the modification of the original plans and also of the commission
as proposed.
176
EVOLUTION OF THE CENTRAL POWER STATION PLAN
The meeting was in session about two hours, and from the notes of remarks,
taken by Mr. F. Rose,1 the preceding summary has been made.
A full explanation of the changes in the plan and the commission proposed,
was sent by Mr. Adams from Paris, June 12, 1890, to J. Pierpont Morgan,
Grand Hotel, Aix-les-Bains, who telegraphed his reply to Mr. Adams as
follows :
Aix-les-Bains, June 20, 1890
Edward D. Adams, Brown's Hotel, Dover Street, London.
As well as can judge, your whole plan meets my entire approval.
Morgan.
The further evolution of the plans for the power station and transmission
system will be found in subsequent chapters in Volume Two, relating to the
construction and operation of the hydraulic and the electric systems.
Author op Niagara Power, Sole Surviving Pioneer Director of The Cataract
Construction Company in Niagara Room, Brown's Hotel, London, August, 1926
1 A secretarial expert who served the commission in London, and later accepted an appointment with
the company in Niagara and New York.
177
— B— I WW
THE
NIAGARA ROOM
THE
INTERNATIONAL
NIAGARA
COMMISSION
COMPOSED OF
LORD KELVIN
CHAIRMAN
England
Prof. E. MASCART
France
Dr. COLEMAN SELLERS
United States of America
Lt.-Col. theo. turrettini
Switzerland
Prof. W. CAWTHORNE UNWIN
SECRETARY
England
WAS ORGANIZED IN THIS ROOM, JUNE zi, 1890
by The Cataract Construction Company, EDWARD DEAN ADAMS, president, 1890-1910
THIS COMMISSION PUBLICLY ANNOUNCED ITS OPINION IN FAVOR OF THE ADOPTION OF ELECTRICAL METHODS
AS THE CHIEF MEANS OF DISTRIBUTING NIAGARA POWER. THE INAUGURATION OF THE ALTERNATING CUR-
RENT POWER SYSTEM AT NIAGARA WAS FOLLOWED BY ITS ADOPTION THROUGHOUT THE WORLD.
Tablet on Inside of Entrance Door of the Niagara Room, Brown's Hotel,
Dover Street, London, Erected 1926, in Commemoration of the
Organization of the International Niagara Commission
THE
INTERNATIONAL NIAGARA COMMISSION
1890-1891
Chapter X
The International Niagara Commission
1890— London— 1891
3 — Sir William Thomson*, ll.d., f.r.s.
President
1 — Prof. E. Mascart 4 — Dr. Coleman Sellers
2 — Prof. W. C. Unwix, Secretary 5 — Col. Theo. Tuhrettini
THE
INTERNATIONAL NIAGARA COMMISSION
CHAPTER X
ORGANIZATION AND EARLY ACTIVITIES
THE purpose of the International Niagara Commission was to conduct a
scientific symposium on the development of power at Niagara Falls,
which would attract the best scientific and engineering knowledge and experi-
ence of those most competent to be found in the nations of the world.
The Cataract Construction Company issued June 25, 1890, a letter of in-
vitation from the temporary office of the commission at London, and from the
administration offices of the company in New York. A letter of eleven pages
enclosed a list of its accompanying documents. As the substance of this com-
munication is contained in the comprehensive and lucid report of the secretary
of the commission which will be found in full in Appendix E, this volume,
the first and last pages only of the letter are reproduced here.
The plan in brief outline was designed to ascertain the best system for the
Niagara enterprise in the opinion of the highest available scientific authorities.
The members of the commission were five in number, two from England
and one each from France, Switzerland and United States, and may be
described as follows:
Sir William Thomson, ll.d., f.r.s., President of Commission, The
University, Glasgow.
Coleman Sellers, e.d., m. inst. c. e., etc., Philadelphia.
Professor Engineering Practise, Stevens Institute of Tech-
nology, Hoboken, New Jersey.
Professor of Mechanics, Franklin Institute of State of Penn-
sylvania.
E. Mascart, Membre de lTnstitut, Paris.
Professeur au College de France.
Directeur du Bureau Central Meteorologique.
Theodore Turrettini, Ingenieur, Geneva.
Lieutenant-Colonel d'Artillerie.
President de la Ville de Geneve.
Directeur des Travaux d'Utilisation des Forces Motrices du
Rhone a Geneve.
Directeur de la Societe Genevoise d'Instruments de Physique.
181
NIAGARA POWER
Wm. Cawthorne Unwin, f.r.s., m. inst. c.e., London.
Secretary of Commission.
Professor of Engineering at the Central Institute of the City
Guilds of London.
At a meeting of organization when all parties were present, Sir
William Thomson was chosen president and Professor Unwin,
secretary.
At the first meeting of the commission at his apartment in Brown's Hotel,
London, on June 21, Mr. Adams presented for consideration the draft of
a letter of invitation and explained the various plans and maps that it was
intended should accompany the invitation. He stated the necessity for his
departure for New York on June 25, and that he would be represented,
during his absence, at first by Edward A. Wickes, then in London, and
later by Francis Lynde Stetson, both vice-presidents, who would soon come
from America with an associated official of The Cataract Construction
Company. Mr. Adams asked that these gentlemen be invited to attend the
different meetings of the commission, not as members, but as listeners and
spectators, that they might thereby be informed of the progress of its activities
and make the acquaintance of the participants and their expert assistants.
At the second meeting of the commission, the letter of invitation was
again revised and the list of those to whom the invitation was to be sent,
was prepared, each member of the commission suggesting the names for
the country he represented. On June 24, the third meeting was held, at
which the final draft of the invitation, in English and French, was adopted,
and the list of those to be invited was approved, including the following
nationals: America, five, England, seven, France, nine, Switzerland, six, and
Hungary, one, being twenty-eight in all.
182
THE INTERNATIONAL NIAGARA COMMISSION
LETTER OF INVITATION
THE CATARACT CONSTRUCTION COMPANY
Administration Offices, Mills Building, New York
Coleman Sellers, E.D. \
John Bogart, New York> Consulting Engineers
State Engineer /
Clemens Herschel, Hydraulic Engineer
Albert H. Porter, Niagara Falls, New
York, Resident Engineer
Edward D. Adams, President
Francis Lynde Stetson
Edward A. Wickes
George H. Kent, Treasurer
V ice-presidents
THE INTERNATIONAL NIAGARA COMMISSION
Telegraphic Address London, June 25, 1890.
"Niagara, London."
Private.
The Cataract Construction Company having completed its organisation and financial
arrangements in the United States of America is desirous of securing the best possible
technical advice as to plans for carrying out the purpose it has in view, from the best
houses at home and abroad. To this end, it offers a series of prizes to a number of
carefully selected Engineers and Engineering houses or Companies of America, Great
Britain, France, Switzerland, and elsewhere for the best practicable engineering scheme
or project.
You are therefore invited to submit projects for the development, transmission and
distribution of about 125,000 effective horse-power on the shafts of water motors at
the Falls of Niagara, to the consideration of an International Niagara Commission,
holding its sessions at Central Institute, Exhibition Road, London.
*lr <Sf *lf a|» -If vt* *J' il- ik, jfc, 1
y[? yf; Vff *T* 5|F ~ fr tjc
For additional information application should be made in person, by mail or wire
to the Secretary of the Commission, or if more convenient to the individual members of
the Commission.
In acknowledging the receipt hereof please inform me if you will enter the Competition.
Respectfully yours,
Cataract Construction Company
Edward D. Adams
President.
After issuing the letter of invitation asking that projects be presented,
there was much correspondence and numerous visits from those intending to
participate. The headquarters of the commission were established at the
Central Institute, South Kensington, Exhibition Road, London, by the
courtesy of its owners, the City and Guilds of London for the advancement
1 It is believed that all data necessary for a complete understanding of this program will be found in
the four pages of the Letter of Invitation in the Appendix, where the full report of the International
Niagara Commission may also be read.
183
NIAGARA POWER
of technical education. There were many conferences with the officials and
engineers of the cataract company who were in London during that period.
Members of the commission, with the American engineers, visited many fac-
tories and installations of power apparatus in England and on the continent
while the projects were being prepared.
STATE OF THE ART OF POWER TRANSMISSION
The most serious problem in the Niagara enterprise was involved in the
transmission and distribution of power. The members of the commission
therefore made special inquiry as to methods of power transmission then in
use, both by visits to various installations and by conferences with experts
and advocates. They examined non-electrical methods and sought com-
parison with electrical operation, having in mind not only what was then in
operation but what might be developed.
In the latter part of July, Commissioners Mascart, of France, and Turret-
tini, of Switzerland, made jointly a tour of inspection of the hydro-electric
and other works of machine construction and operation in France and
Switzerland.
Vice-president Stetson and Engineer Bogart commenced on August 22
a series of visits in Switzerland and France, ending in Paris, September 6,
and going over practically the same territory covered by the previous visits of
President Adams and Chief Engineer Sellers.
Personal acquaintance with many of those who were preparing plans to
submit to the commission facilitated better understanding of the conditions
at Niagara, and prompted an extension of the time for filing such projects
to January 1, 1891.
Much time was devoted, while in Paris, to a careful examination of the com-
pressed air system, then in operation under the direction of Victor Popp and
the guidance of Prof. A. Riedler, of Berlin, an exponent of the art, and his
consulting engineer.
This method of power transmission was further examined in England, at
Birmingham, under the guidance of John Sturgeon, of Chester, and Professor
Lupton, of Leeds. The uses of compressed air at Chester and elsewhere of less
importance were also observed.
One of the largest users of compressed air in Birmingham said that he con-
sidered it the best practicable power and when asked if he thought it better
than electricity answered, "Oh, I say nothing about electricity now; I
use this until the coming of electricity which I believe is the great power of
the future."
184
THE INTERNATIONAL NIAGARA COMMISSION
The electrical station at Deptf ord, transmitting light by alternating current
to Grosvenor Gallery, London, was visited by all the company's representa-
tives from time to time, and the views of Mr. Ferranti, its designer, were
found of much interest in their relation to compressed air and alternating
current at high pressure in the generation as well as in the transmission of
large amounts of power to considerable distances.
Professor Rowland, of Baltimore, and Professor Riedler, of Berlin, were
among those who discussed with Mr. Ferranti in London, the relative ad-
vantages of compressed air and electricity for power transmission. Professor
Riedler said to Mr. Ferranti that if his statements were well founded there
could be no question that electricity must prevail over compressed air.
Lord Armstrong, at that period considered the apostle of hydraulics in
England, in a conference with Sir William Thomson (Lord Kelvin) who
related the conditions of the Niagara project for the transmission of power
and the organization of the International Niagara Commission to consider
the subject, was reported to have said:
I do not think you can look for much good to be gained by hydraulic transmission ;
the wonderful progress that has been made in electricity of late, would seem to me to
indicate that you will have to rely almost wholly on electrical transmission.
Clemens Herschel, hydraulic engineer of the cataract company, went at
its request to London, October 8, for a conference with Chief Engineer
Sellers, Professor LTnwin and George F. Deacon, hydraulic engineer of
Liverpool, regarding various characteristics of the proposed tunnel. Several
days were passed in critical examinations of all the questions involved in
determining its various dimensions.
An agreement was reached unanimously and Mr. Herschel sailed for home
on the 15th, ready to give precise figures in working drawings for the contract,
already prepared for the construction of the tunnel.
The beginning of the tunnel at this time before the method of distributing
power had been determined, and when it appeared that no existing system
was adequate to the large scale operation proposed at Niagara, was considered
a bold step; it involved a great risk; it was based on faith in the ability of
scientific and engineering skill to solve the new problems.
Mr. Stetson departed for home October 29, having passed more than three
months in England and on the continent in his search for information to
guide his judgment as to what course was for the best interest of the stock-
holders of The Cataract Construction Company to pursue in the furtherance
of its enterprise at Niagara Falls.
185
NIAGARA POWER
Dr. Sellers wrote after Mr. Stetson's departure :
I part with him with regret, missing continually his active and unwearied attention
and wise direction of the business of the company. His orderly, legal mind and his ad-
ministrative ability have been shown in all the correspondence and conferences that have
led up to the present assured feeling that the first important steps are right.
In the latter part of November, Dr. Sellers left London for an extended
tour in France and Italy for the purpose of visiting engineering works and
installations not previously seen and incidentally of making the acquaintance
of the engineers connected therewith.
The visit in Rome, with Prof. G. Mengarini, the electrical engineer, and
the study of his Tivoli-Rome transmission project proved of great interest
and profit. Professor Mengarini was a member of the commission of ex-
perts to examine, test and report on the Lauffen-Prankfort transmission of
1891. He was particularly esteemed in electrical engineering circles for his
advanced work on electrolysis and alternating currents.
The Tivoli-Rome transmission is 18 miles in length. The so-called "new"
falls are 334 feet high. The hydro-electric plant was built by Ganz & Company
of Budapest, and was placed in operation in July, 1892. A full report regard-
ing the Tivoli project as designed was made by Dr. Sellers.
He returned to London late in December to assist Professor Unwin in the
distribution of the duplicate copies of the competition projects received by
January 1, 1891 for the International Niagara Commission. A complete set
of all maps and plans, as well as a copy of the memoirs, or explanatory text,
was to be provided for each commissioner in order that he might have full
opportunity for study prior to the assembling of the full commission for their
consideration.
CONSIDERATION OF PROJECTS AND AWARD OF PRIZES AND PREMIUMS
There were fifteen European and five American competitors represented
by the project received. Several projects were not entered in the competition
because of failure to comply with the important conditions imposed by the
terms of the Letter of Invitation.
The competitors were duly notified upon the receipt of their projects that
the commission would meet to consider them on Thursday, January 29, 1891,
and daily thereafter as might become necessary to decide the competition and
award the prizes, and that any competitors who desired to attend the meeting
could do so.
Quite a number of the competitors availed themselves of the opportunity to
attend the first three sessions of the commission, the continental competitors
generally being accompanied by their technical experts.
18G
THE INTERNATIONAL NIAGARA COMMISSION
The commissioners were in full attendance, sat for about seven hours daily,
for six days without a break, and reached their final conclusions on
February 4, 1891.
Clemens Herschel, hydraulic engineer, and Albert H. Porter, resident
engineer, were present by invitation at all sessions, and rendered valued
assistance by personal explanations of local conditions at that time in Niagara,
and by entertaining the foreign engineers between sessions, for which the
familiarity of Mr. Herschel with French and German, which he spoke fluently
in technical terms, was much appreciated.
Daily reports of the proceedings of the commission in session were made
to the New York office of the company by Messrs. Herschel and Porter.
Dr. Sellers presented a full report in March, to the cataract company upon
his return to New York, after an absence in Europe for about nine months,
solely in the interests of the company.
The formal duty for which the commission was organized was now per-
formed by the award of prizes among the competitors. In the final conclusions
there was almost entire unanimity.
Seventeen projects were submitted by the twenty represent-
atives of six countries: America, England, Switzerland,
France, Germany, and Hungary. Three projects were
rejected as irregular and fourteen projects were considered
in the competition.
Awards of prizes were made as follows1: Four for pneumatic
projects, four for electric projects. Eight prizes awarded:
two to Switzerland, two to France, one to Germany and
France combined, one to England, one to Hungary, and one
to America.
No first prize was awarded for a combined project for hydraulic develop-
ment and electrical distribution of power. There was no project which, in the
opinion of the commission, could be recommended for adoption without con-
siderable modification.
The highest prize awarded for combined projects for hydraulic develop-
ment and electrical distribution of power went to Messrs. Faesch and Piccard,2
and Cuenod, Sautter & Company, both of Geneva.
1 List of Awards is given in Part III of the Report by Secretary Unwin. Appendix E, Volume I.
2 A contract was subsequently made with Faesch and Piccard, by which complete working drawings
were made for a 5000 horse-power turbine and governor. The entire turbine installation, of ten units of
5000 horse-power each, in Power-house Number One, was manufactured in America from these same
designs of Faesch and Piccard.
187
NIAGARA POWER
The first prize for projects for hydraulic development was awarded to
Escher, Wyss & Company, of Zurich.1
No prize was awarded for system of distribution.
Premiums were awarded to all competitors who, in the ojjinion of the
commission, complied with the terms of the Letter of Invitation.
For Combined Projects
premiums of £200 each were awarded to eight competitors.
For Hydraulic Projects for Developing Power
premiums of £100 each were awarded to four competitors.
For Projects for Distributing Power
premiums of £100 each were awarded to two competitors.
Five American projects were presented to the commission for considera-
tion as candidates for prizes and premiums :
Brush Electric Light and Power Company of Niagara Falls,
Benjamin Rhodes, Manager. Hydraulic and electric trans-
mission of power.
Norwalk Iron Works Company of Norwalk, Connecticut,
Eben Hill, president. Transmission of power by compressed
air. Pelton Water Wheel Company combining for hy-
draulics.
Pelton Water Wheel Company of San Francisco, California.
Stillwell and Bierce Manufacturing Company of Dayton,
Ohio, Turbines.
Swain Turbine and Manufacturing Company of Lowell,Massa-
chusetts.
The projects of the Pelton Water Wheel Company and of the Norwalk
Iron Works Company were the only American projects that complied with
the conditions of the competition. Each of these projects received a prize of
£200, and each of them a premium of £100.
The total expenditures in England, France, Switzerland, Belgium and
Germany, for engineering fees, machinery and materials resulting directly
1 Later Escher, Wyss & Company, of Zurich, designed working drawings for a 5500 horse-power
turbine, from which eleven units were constructed in America as the full hydraulic equipment of Power-
house Number Two.
This firm also furnished drawings for a 10,000 horse-power turbine and received an order for the
manufacture of three of these machines complete, including shafting and governors, at their works
in Zurich, for the Canadian power-house. Two additional turbines made in America were of this design,
for which Escher, Wyss & Company made the governors of the same model as those furnished with the
three machines made in Zurich.
188
THE INTERNATIONAL NIAGARA COMMISSION
from the International Niagara Commission, amounted to about $430,000,
not including the salaries and expenses of several members of the board of
engineers and officers of The Cataract Construction Company attending the
sessions of the commission and in connection therewith.
The payments made to foreign consulting engineers during the years
1891-1893, including the expenses of the commission, amounted to $75,872,
not including additional payments made after 1893, from time to time, for
expert advice by foreign constructing as well as consulting engineers.1
REPORT ON THE PROJECTS
As soon as practicable after the commission had adjourned and its affairs
had been brought to a conclusion, Prof. W. C. Unwin, secretary of the com-
mission, presented his report on the projects submitted to the International
Niagara Commission accompanied by the following statement:
London, April 13, 1891.
The Cataract Construction Company having asked for a report on the plans sub-
mitted to the commission, the secretary has prepared the following statement. The
commission having separated, it is not possible to have an official report carrying the
authority of the commission.
The report2 is in three parts. The first sets forth the power problem at
Niagara which was the basis for the invitation for projects and a summary
of the projects received; the second is a detailed abstract of the projects re-
ceived and the final part lists the award of prizes and premiums and states
the general conclusions.
The report not only presents a vital episode in the history of The Niagara
Falls Power Company but it is a historic document presenting in an authorita-
tive way the state of the art of power transmission at the beginning of 1891.
The fact that none of the proposals for distribution of power was regarded as
worthy of a prize or adequate to the requirements at Niagara and the fact that
a little over two years later a system was adopted which is in universal practise
makes clear the great step that was taken at Niagara. It was a step which
called for courage — the courage of leadership.
THE SERVICE RENDERED BY THE COMMISSION
On the evening of February 4, 1891, the day on which the commission com-
pleted its labors, the president of The Cataract Construction Company and
the president of the commission exchanged greetings by cable :
Sir William Thomson, London
The directors of the Cataract company thank you and your associates for your
careful consideration and decisions. We believe the International Niagara Commission
1 For details of total foreign expenditures of $430,000, see Appendix O, Volume II.
2 Appendix E, Volume I.
189
NIAGARA POWER
will become of historical importance in the annals of industrial progress, and mark an
epoch of international fraternity in the solution of great scientific problems. We most
cordially invite you all to the opening ceremonies.
Cataract Construction Company, New York
La commission en terminant ses travaux adresse a, Monsieur Adams ses vifs remerci-
ments pour les relations si courtoises qu'elle a trouvees aupres de lui. Elle exprime tous
ses voeux pour le succes de l'entreprise du Niagara.
1 1 6 Thomson.
At the last session of the commission a resolution was recorded expressing
the appreciative thanks of its members to Professor Unwin for his untiring
and valuable services as secretary.
After the last official meeting of the International Niagara Commission
and prior to the members' separation after the award of the prizes and bonuses,
the president of the commission, Sir William Thomson, entertained his as-
sociate commissioners at dinner, at the Whitehall Club, London, to which he
invited several of the prominent scientists, engineers and financiers of England
and several from the continent.
Niagara as a topic, the proceedings of the commission, and the probable
results of its action, were found of extraordinary interest.
Messrs. Herschel and Porter made a visit in February to Switzerland and
Paris to meet some of the competitors and to learn their reaction from the
sessions and conclusions of the commission. It may be expressed as follows:
Electricity or compressed air for transmission of power: alternating
current attractive.
Central station development and distribution approved.
Larger and still larger prime movers and generators or compressors
as new projects are prepared.
Foreign engineers expected to assist in the organization and installa-
tion at Niagara Falls.
General satisfaction with the organization of the commission and
its fairness and liberality in dealing with the contestants.
After calling upon the engineers, who had shown an interest in the Niagara
enterprise, at Geneva, Winterthur, Zurich, Oerlikon, Paris and London, they
sailed for New York, February 11, 1891, thus ending the eastward pilgrimage
for scientific information applicable to the utilization of the waters of Niagara
River.
190
THE INTERNATIONAL NIAGARA COMMISSION
Messrs. Unwin and Turrettini, of the International Niagara Commission,
visited the Frankfort Exhibition in the interest, partially at least, of the
Niagara project, and both were subsequently retained by the cataract com-
pany as foreign consulting engineers. They made several visits to Niagara
and assisted personally in the company's consideration of the electrical system
to be adopted. Their counsels were greatly valued in the determination of the
Imp. Ch. Wittmann
E. Mascart
Physicist
1837-1908
efficiency of the turbine and generator designs submitted to the company
by the foreign and American manufacturers.
In his report of March 6, 1891, Dr. Coleman Sellers, chief engineer, wrote
The Cataract Construction Company:
What has been accomplished by means of the International Commission may be ex-
pressed in few words. It has shown us what we can reasonably hope to do ; it has shown
us in a degree how to do what is wanted and where we can expect to get what we require
191
NIAGARA POWER
to do the work. It has brought the scheme before the world with a prestige that cannot
be measured by dollars ; it has enlisted the interest of the whole scientific world ; it has
made this company command the confidence of the world and won for its management
respect, as wise, far-seeing, cautious business men and not followers of any one or more
visionary schemer or inventor.
Prof. E. Mascart, the commissioner from France, wrote from Paris, June
29, 1891:
Cette grande entreprise marquera une date importante dans l'histoire des applica-
tions de Pelectricite et je tiens pour un grand honneur d'y avoir pris une part, si petite
qu'ellesoit. E MASCART
Directeur
Bureau Central Meteorologique
Andre Hillairet1
1857-1926
Ingenieur des Arts et Manufactures
Ancien President des Ingenienrs Civils de France
Ancien President de la Societe Francaise des Electriciens
Chevalier de la Legion d'Honneur
Designer of the only Project of 10,000 Horse-power Units
Submitted to the International Niagara Commission
1 See Appendix E, pages 421, 443 and 444.
192
RELATED AND ASSOCIATED COMPANIES
ORGANIZATION— FINANCE
HYDRAULIC RIGHTS
AND FEDERAL RESTRICTIONS
Chapter XI
(In Four Parts)
Contributed by
Frederick L. Lovelace, a Director and Secretary of
The Niagara Falls Power Company
The Rights
to take water for power purposes by
THE NIAGARA FALLS POWER COMPANY (mcmxviii)
are based upon grants to its constituent companies
and its subsequent federal license
The Niagara Falls Power Company, chartered in 1886 under name of Ni-
agara River Hydraulic Tunnel, Power and Sewer Company.
Hydraulic Power Company of Niagara Falls and its predecessor, The
Niagara Falls Hydraulic Power and Manufacturing Company, char-
tered in 1878.
Canadian Niagara Power Company, Limited.
These rights, in various legal forms, are derived from
The Common Law,
The State of New York,
The Congress of United States,
The War Department of United States,
The Federal Water Power Commission,
Province of Ontario, Canada,
Dominion of Canada,
and are described herein by
Frederick L. Lovelace, Secretary,
The Niagara Falls Power Company.
HYDRAULIC RIGHTS
AND FEDERAL RESTRICTIONS
CHAPTER XI
Part I
NEW YORK STATE LAWS, 1857-1918
THE EIGHT TO USE WATERS OF NIAGARA RIVER IN POWER PRODUCTION
THE Niagara Falls Power Company produces the power furnished by it
by utilizing the energy of the flow or fall of the Niagara River from the
level above the upper rapids to that immediately below the Great Falls.
Water is diverted from the river channel about a mile above the American
Falls. After being passed through hydraulic turbines all the diverted water
is returned to its natural course in the first pool below that falls.
The company owns the uplands along the shore of the river and lands under
water at the places of water diversion and for a distance of about 2 miles
up the American shore. It also owns the shore lands where the water is
returned below the falls and for a considerable distance above the points
of discharge. The only American shores owned by others between the places
of diversion where now made and return are lands within the New York
State Reservation at Niagara, where the fee of the lands is in the State of
New York, which by acts of its legislature has consented to such diversion.
In addition to the state reservation lands about 165 feet, known as the "Ten-
Rod Strip" (now a part of Porter Park), intervene between the intake and
discharge of the company's "Niagara" plant. It was formerly owned by
The Niagara Falls Power Company (constituent) and by it donated to the
city of Niagara Falls to be used only for purposes of a park and a public dock,
the company having reserved to itself and its successors the property and
rights therein necessary for the production of power.
SOURCES OF THE COMPANY'S RIGHTS
The right of the company so to divert and use the water of the river is based
1. upon ownership of (a) the uplands and bank of the stream where
water is diverted, (b) abutting lands under water, and (c)
shore lands where the water is returned ;
2. upon (a) a grant by the State of New York to one of the constit-
uent corporations, (b) a specific declaration and confirmation
by the state of the rights exercised by another of the constituent
corporations, and (c) the consent of the state that all the rights
199
NIAGARA POWER
of the constituent corporations may be enjoyed by the present
(consolidated) company, and treated in this Part I;
3. upon a 50-year license of the Federal Power Commission, acting
by authority of the Congress, treated in Part III.
RIPARIAN OWNERSHIP
The first ("1" above) is a right inherent in, pertaining to, and a part of, the
company's real property. It is wholly independent of rights not appurtenant
to the lands obtained through governmental grants, licenses or otherwise,
but is not repugnant thereto. Both this property right and such grants and
licenses and their confirmation are limited by certain paramount rights of the
public in the stream, the most important of which is navigation. Excepting
in respect of such paramount public rights under the Common Law as it pre-
vails in the State of New York the riparian owner may divert upon his lands
water for manufacturing purposes without other restriction than the physical
limitation of the particular location and rights of other riparian owners.
In the case under consideration the State of New York, which is the private
proprietor of the lands in the state reservation at Niagara, is the only other
riparian owner on the American side of the river whose rights could be af-
fected. By statutory enactment, the state has expressly consented to such
water diversion and has thereby waived any conflicting rights of its private
riparian ownership.
Rights of the owners of shore lands were defined in an opinion of the New
York Court of Appeals, as follows :
The rule of law is familiar that each owner of land contiguous to a natural water-
course has a right, as owner of such land and as naturally connected with and incident
to it, to the natural flow of the stream along his land and its descent, and all the force to
be derived therefrom, for any domestic or hydraulic purpose to which he may decide to
apply it. He may, by means of a ditch or conduit, withdraw water from the stream
and cause it to flow unnaturally through his land for agricultural, industrial or other
purpose, provided he causes it, in its substantial volume to return upon his land to the
stream. . . . Every owner is bound to use the water reasonably as it flows so as not to
injure the equal rights of all the owners. Whether or not a use or detention of the water
is reasonable must be determined by the extent and capacity of the stream, the uses
to which it is and lias been put and the rights that other owners on the stream have. . . .
The rights involved in the instant dispute arose from the lateral contact of the
lands of Thomson and Dix with the waters of the river, arrested and restrained by
the dam. The navigability of the river or the ownership of the soil over which the
waters flow neither increase nor diminish rights of such a nature. They are at no point
of the discussion here connected with the right of navigation or other public right or with
the occupation or use of the bed of the stream. The right to the use of the water of a
200
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
flowing stream, navigable or unnavigable, arises by mere operation of law as incident to
the ownership of the bank and is a part of the estate of its owner. . . . It is a valuable
property right which can be severed from the riparian land by grant, condemnation, re-
linquishment or prescription. Thomson and Dix as owners of the single tract might
release it or grant it to another or restrict or reserve it as owners of the single tract to
specified uses or places.
The United Paper Board Company vs. Iroquois Pulp and Paper Company
(decided March, 1919) 226 N. Y. 38
GRANTS AND LIMITATIONS
The use of the water of the Niagara River in power production and the
construction of extensive works for such use by the corporations which were
consolidated into The Niagara Falls Power Company in 1918 (including
predecessors of one of them ) , proceeded from the time of the first use through
the hydraulic canal (construction of which was begun in 1852) until the year
1892, and on the part of one company until 1896, in reliance mainly upon their
respective proprietary rights as riparian owners.
The Niagara Falls Hydraulic Power and Manufacturing Company, the
immediate predecessor in title of Hydraulic Power Company of Niagara Falls
(one of the constituent corporations of The Niagara Falls Power Company,
mcmxviii) was incorporated by Jacob F. Schoellkopf and associates in 1878
under the laws of New York. It succeeded by purchase to the title of the hy-
draulic canal and the other property and rights of the "Day" hydraulic power
development. The lands owned by it consisted, mainly, of ( 1 ) uplands and
lands under water at Port Day about a mile above the American Falls adjoin-
ing what is now the upper limit of the New York State Reservation at Niagara,
(2) a large tract fronting on the lower river, and (3) a connecting strip 100
feet wide granted for hydraulic canal purposes by the owners of the inter-
vening shore lands. Through this 100-foot strip the "Day" or "hydraulic"
canal diverted water from the upper river and led it to a receiving basin near
the high bank of the lower river on the large tract mentioned. The construction
of the canal had been started in 1852. From time to time after the year 1857,
when the canal was sufficiently completed for use, mills had been built on its
terminal basin, taking water therefrom for power production and discharging
the spent water through the high bank into the lower river.
The State of New York by an act of its legislature, Chapter 968 of the
laws of 1896, "recognized, declared and confirmed" the right of The Niagara
Falls Hydraulic Power and Manufacturing Company to take and use the
water of the Niagara River and to develop power therefrom and sell the same.
The act expressly limited and restricted the confirmation of the rights of the
201
NIAGARA POWER
company to the use by the company of "such quantity of water as may be
drawn by means of the hydraulic canal of said company when enlarged
throughout its entire length to a width of 100 feet and to a depth and slope
sufficient to carry at all times a maximum uniform depth of 14 feet of water,"
and also contained a proviso that the exercise by the company of the "rights
hereby declared and confirmed shall not impair the practical navigation of the
Niagara River."
In a decision of the New York Supreme Court, affirmed by the Appellate
Division of that court and by the Court of Appeals, it was held that The Niag-
ara Falls Hydraulic Power and Manufacturing Company had property
rights, as distinguished from a "franchise," entitling it to divert water from
the river for power production.
In its opinion the Court stated:
The relator, as a riparian owner, and as owner of the lands under the waters of the
Niagara River adjacent to its uplands from which the water is immediately taken, has
the right to the use of the waters of the river for manufacturing purposes, and to divert
the same for that purpose, returning them to the river as it does after passing over its
own lands ; . . . subject only to the paramount right of the state to utilize these waters
for a public use, without compensation to such riparian owners ; all riparian rights
remaining unimpaired until the exercise of such paramount right by the state. This being
so, it appears that the relator, as riparian owner, had the right to take waters from the
Niagara River for manufacturing purposes, not interfering thereby with the naviga-
bility of the stream, such right being in no sense in the nature of a franchise but a corpo-
real hereditament, not depending either upon grant or prescription. . . . And this view
of the relator's rights is confirmed by the act of 1896 (Chapter 968) . . . which in
terms confirms and defines the riparian rights of the relator.
The People ex rel. Niagara Falls Hy. Power & Mfg. Co. vs. Smith
70 App. Div. 513, affirmed 175 N. Y. 469
The Niagara Falls Power Company (the constituent corporation of that
name) was chartered March 31, 1886, under the name of "The Niagara River
Hydraulic Tunnel, Power & Sewer Company" by an act of the legislature of
the State of New York, Chapter 83 of the laws of 1886. Its charter was
amended or enlarged by subsequent acts, as follows:
(1) Chapter 489 of the laws of 1886;
(2) Chapter 109 of the laws of 1889;
(3) Chapter 253 of the laws of 1891 ;
(4) Chapter 513 of the laws of 1892;
(5) Chapter 477 of the laws of 1893.
Its name was changed to The Niagara Falls Power Company by an order
of the New York Supreme Court entered November 11, 1889.
202
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
Construction of the company's works was begun in 1890. Actual electric
power production began in 1895.
The charter as originally enacted had declared that the corporation was con-
stituted a body corporate and politic for the purpose of "constructing, main-
taining, and operating in connection with the Niagara River an hydraulic
tunnel . . . and for furnishing hydraulic power for manufacturing pur-
poses." It provides, among other things, that the company should have the
power to construct, operate and maintain for its corporate purposes a tunnel,
conduits, or sewers as specified in the act, or under the waters of the Niagara
River, provided such structures are so laid as not to interfere with navigation
of the river.
While clear that the legislature understood and intended that the company
was being chartered for the express purpose of producing power by use of
water diverted from the Niagara River, neither the original act nor any of
the earlier amendatory acts contained a grant for such purpose in explicit
terms. It was assumed that the common law right of a riparian owner was
adequate for that purpose.
In 1892, the State of New York by an act of its legislature (Chapter 513 of
1892) granted The Niagara Falls Power Company, its successors and assigns,
the "right to take and use the waters of the Niagara River ... at any points
on or opposite to any riparian land now owned by said corporation ... to
the extent required for the proper operation of the authorized works of said
corporation during the continuance of such works."
The grant provided that nothing contained therein or in any of the
former acts concerning the corporation should be construed "to confer an
exclusive right nor any right to infringe upon the state reservation or to
obstruct the navigation of the Niagara River, or to take therefrom more
water than shall be sufficient to produce 200,000 effective horse-power."
Besides having sovereign jurisdiction, the state had rights as a private ri-
parian owner between the places of diversion and return. Its consent as such
riparian owner to water diversion as made by the company was thus obtained.
While the bill (later enacted as Chapter 513 of 1892) was pending in the
legislature, the Hon. Andrew H. Green, then president of the Board of Com-
missioners of the state reservation at Niagara, called the attention of the
governor and of the attorney-general of the state to the terms and conditions
of the grant, which he intimated would likely constitute a contract between
the state and the company. Such a probability was expressly recognized by
the attorney-general in his formal published opinion (Report of Attorney-
General for the year 1892; Opinions, page 106) . When it became a law The
203
NIAGARA POWER
Niagara Falls Power Company filed with the Secretary of State of the State
of New York its acceptance of the grant and of the terms and conditions upon
which it was made and the original company and its successor company have
complied fully with the terms of the act.
The present The Niagara Falls Power Company was formed in October,
1918, by consolidation, pursuant to Chapter 596 of the laws of 1918, of Cliff
Electrical Distributing Company (incorporated 1909), The Niagara Falls
Power Company (incorporated 1886), and Hydraulic Power Company of
Niagara Falls (incorporated 1910) .
Chapter 597 of the laws of 1918 authorizes the consolidated company to
exercise all powers theretofore or thereafter conferred upon either or all of
the constituent corporations, provided (1) that nothing in the statute con-
tained shall authorize the consolidated company to divert from the Niagara
River any water in excess of the amount theretofore authorized by the State
of New York in respect of the constituent companies, and (2) that if the
consolidated company shall divert more than 15,100 cubic feet per second
there shall be reserved to the state the right to charge an equitable rental for
the excess.
204
Part II
THE CONGRESS OF THE UNITED STATES
Legislation and Reports
Regarding the Preservation of
Niagara Falls
Permits under the Burton Law
1906-1913
HISTORY
At the time of the adoption of the Constitution of the United States, and
for some years thereafter, the State of New York was the sole proprietor of
all the shore lands and lands under the waters of the Niagara River on the
United States side of the boundary between it and Canada and of the usufruct
of the flow of the water on that side of the boundary.
Subsequently, from time to time, all the shore lands and a considerable part
of abutting lands under shallow waters were granted by the state by patent
to individuals or corporations. In 1884 the state re-acquired by purchase or
expropriation that part thereof now embraced in the New York State Reser-
vation at Niagara, which includes all the shore lands on the American side of
the river between the lands where The Niagara Falls Power Company now
takes water from the river to develop power and the lands from which it re-
turns such waters again to their natural channel. By acts of its legislature in
1892 and 1896 respectively, as above mentioned, the state granted to one of
the constituent corporations of The Niagara Falls Power Company and con-
firmed in another thereof rights to the use of the waters of the Niagara River
which are now exercised to the extent permitted by the Federal Government.
The State of New York has sovereign jurisdiction over the river and the
flow of its waters for every purpose except those heretofore expressly delegated
by it to the Congress, namely, purposes pertaining to commerce (which in-
cludes navigation) and national defense.
The Federal Government never had and has not now any proprietary in-
terest in the shores or in the bed of the Niagara River, and has no right of
usufruct of the flow of its waters under any existing or foreseeable situation.
WATER DIVERTED FROM THE FALES BY POWER COMPANIES
CHARTERED BY NEW YORK STATE
Diversion of water from the Niagara River for power purposes by the pred-
ecessors of the present The Niagara Falls Power Company continued until
1906 without attempt on the part of the Congress or of any department of the
205
NIAGARA POWER
Federal Government to limit or control it. Until that time no claim had been
made that such diversions came within the scope of the limited jurisdiction
of the Congress.
INTERNATIONAL WATERWAYS COMMISSION
On March 27, 1906, President Roosevelt submitted to the Congress a report
by the American members of the International Waterways Commission re-
garding "the preservation of Niagara Falls." With that report were in-
cluded "memoranda showing what has been attempted by the Department of
State in the effort to secure the preservation of the falls by treaty."
The report contained the following recommendations :
(a) The Secretary of War to be authorized to grant permits for the diversion of 28,500
cubic feet per second, and no more, from the waters naturally tributary to Niagara
Falls, distributed as follows :
Cubic feet
The Niagara Falls Hydraulic Power and Manufacturing Company . . . 9,500
The Niagara Falls Power Company 8,600
Erie Canal or its tenants (in addition to lock service) 400
Chicago Drainage Canal 10,000
(b) All other diversion of water which is naturally tributary to Niagara Falls to be
prohibited, except such as ma}' be required for domestic use or for the service of
locks in navigation canals.
(c) Suitable penalties for violation of the law to be prescribed.
(d) The foregoing prohibition to remain in force two years, and then to become the
permanent law of the land, if, in the meantime, the Canadian Government shall have
enacted legislation prohibiting the diversion of water which is naturally tributary
to Niagara Falls, in excess of 36,000 cubic feet per second, not including the
amounts required for domestic use for the service of locks in navigation canals. It
is assumed, however, that an understanding upon this subject would be reached by
treaty.
The object of such legislation would be to put a stop to the further depletion of the
falls, and at the same time inflict the least possible injury upon the important
interests now dependent upon this water-power. The amount to be diverted on the
Canadian side has been fixed with a view to allowing to the companies on that side
the amounts for which they now have works under construction, which are :
Cubic feet
Canadian Niagara Power Company 9,500
Ontario Power Company 12,000
Electrical Development Company 11,200
Niagara Falls Park Railway Company 1,500
Welland Canal or its tenants (in addition to lock service) 1,800
206
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
In submitting the report President Roosevelt said :
I earnestly recommend that Congress enact into law the suggestions of the American
members of the International Waterways Commission for the preservation of Niagara
Falls, without waiting for the negotiation of a treaty. ... In any event I hope that
this nation will make it evident that it is doing all in its power to preserve the great
scenic wonder, the existence of which, unharmed, should be a matter of pride to every
dweller on this continent.
THE BURTON ACT
Theodore E. Burton, then a member of the House of Representatives and
chairman of its Committee on Rivers and Harbors, introduced a bill seeking
to enact into law the recommendations of the commission with certain modi-
fications. The proceedings and the debate showed the purpose of the bill to be
solely the preservation of Niagara Falls — a local matter of which the State
of New York and not the Federal Government would seem to have sole juris-
diction.
Notwithstanding objections of the State of New York and of those whose
interests were likely to be adversely affected, the Burton Bill became a law
by the approval of President Roosevelt on June 29, 1906.
The act authorized the Secretary of War to grant :
(a) Permits for the diversion of water from the Niagara River or its tributaries for the
creation of power, but only to companies then actually producing power from the
waters of that river or its tributaries in the State of New York or from the Erie
Canal, and only to the amount then actually in use or contracted to be used in
factories the buildings for which were in process of construction, and not exceeding
to any one permittee a maximum amount of 8600 cubic feet per second, and not
exceeding to all an aggregate amount of 15,600 cubic feet per second;
(b) Permits for the transmission of power from the Dominion of Canada into the United
States in an amount in the aggregate not in excess of 160,000 horse-power;
(c) Revocable permits for diversion of additional amounts of water "to such amount,
if any as, in connection with the amount diverted on the Canadian side, shall not
injure or interfere with the navigable capacity of said river, or its integrity and
proper volume as a boundary stream, or the scenic grandeur of Niagara Falls" ;
(d) Revocable permits for the transmission of additional electrical power from Canada
"but in no event shall the amount included in such permits, together with the said
160,000 horse-power and the amount generated and used in Canada, exceed 350,000
horse-power."
Diversion of water from the Niagara River or its tributaries other than as
permitted by the Secretary of War pursuant to the act was prohibited, with
the proviso that such prohibition should not be interpreted as forbidding "the
diversion of water of the Great Lakes or of Niagara River for sanitary or
207
NIAGARA POWER
domestic purposes or for navigation ; the amount of which may be fixed from
time to time by the Congress of the United States or by the Secretary of War
of the United States under its direction."
The act also contained the following provisions :
Sec. 4. That the President of the United States is respectfully requested to open
negotiations with the government of Great Britain for the purpose of effectually pro-
viding by suitable treaty with said government, for such regulation and control of the
waters of Niagara River and its tributaries as will preserve the scenic grandeur of
Niagara Falls and of the rapids in said river.
Sec. 5. That the provisions of this act shall remain in force for three years from and
after date of its passage, at the expiration of which time all permits granted hereunder
by the Secretary of War shall terminate unless sooner revoked, and the Secretary of
War is hereby authorized to revoke any or all permits granted by him by authority of
this act, and nothing herein contained shall be held to confirm, establish, or confer any
rights heretofore claimed or exercised in the diversion of water or the transmission of
power.
Substantial penalties were provided for violations of the provisions of the
act.
From time to time as the respective terms of the act and its extensions drew
near or passed expiration, the operation of the Burton Law, substantially
unchanged, was extended until final expiration on March 4, 1913.
The Niagara Falls Power Company (constituent) filed with the Secretary
of War July 5, 1906, under protest as hereinafter set forth, its applications
dated July 3, 1906, for permits under the Burton Law, respectively, (1) to
divert 8600 cubic feet of water per second from the Niagara River on the
American side for power production, and ( 2 ) to transmit electricity from the
plant in Canada of its subsidiary corporation (Canadian Niagara Power
Company, Limited) into the United States to the amount of 121,000 horse-
power, the Canadian Niagara Power Company, Limited, joining in the latter
application.
An application was filed at the same time by The Niagara Falls Hydraulic
Power and Manufacturing Company (predecessor of another of the constit-
uent corporations of the present The Niagara Falls Power Company) for a
permit to divert 9500 cubic feet per second on the American side for power
production in its plant.
Applications were also filed by others ( 1 ) for permits to transmit into the
United States electric power generated by companies on the Canadian side
of the river, and (2) for diversion within the State of New York by companies
claiming rights therefor, but without constructed facilities for utilizing the
water.
208
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
The application of The Niagara Falls Power Company (constituent) for
a diversion permit included the following statements :
The Niagara Falls Power Company . . . recognizing that under the menace of
the stringent provisions of and the severe penalties imposed by the act of the first session
of the Fifty-ninth Congress entitled "An Act for the Control and Regulation of the
Waters of Niagara River, for the Preservation of Niagara Falls, and for other Pur-
poses," it will be impossible for the applicant to conduct its business except under the
authority of the permit of the Secretary of War referred to and provided for in Section
2 of the said act, in its own behalf and in behalf of its power tenants hereinafter de-
scribed, and under the provisions of the said act hereby respectfully applies to the
Secretary of War for
A permit for the diversion of water in the United States from the Niagara River, for
the creation of power to the amount of eight thousand six hundred (8600) cubic feet
per second.
This is the amount of water of said Niagara River now actually in use by the appli-
cant, as reported by the International Waterways Commission, Senate Document 242
(Sixty-second Congress, Second Session), Art. 9, p. 5 ; Art. 30, p. 11.
The applicant, however, respectfully protests against the provisions of the said act
in so far as the same prohibit or are inconsistent with the present and continued exercise
by the applicant of its just and lawful right, during the continuance of its works, to
divert the waters of the said Niagara River and to use the same for the creation of
power, to an extent sufficient to produce 200,000 effective horse-power; and without
waiving, respectfully reserves the applicant's said right, and all right now vested in it,
or to which it is now entitled (1) under the Common Law, or (2) under the Statutes of
the State of New York.
HEARINGS AND REPORTS ON APPLICATIONS FOR PERMITS
Hearings on the applications for water diversion on the New York side of
the river were conducted by Secretary of War William H. Taft, in person,
at his office in Washington, on July 5th, and at Niagara Falls, New York, on
July 12, 1906. On July 14, 1906, Secretary Taft issued an interlocutory
order granting certain temporary permits governing diversion on the New
York State side of the river and transmission into the United States from
Canada, until final determination of the matter by him, and referring all ap-
plications for permits to Captain (later Colonel) Charles W. Kutz, then of
the Corps of Engineers, United States Army, and the American members of
the International Waterways Commission to report on the facts.
Captain Kutz, who made extensive investigations on the ground, filed with
the Secretary of War his report on the "Existing Water-power Situation at
Niagara Falls, so far as Concerns the Canadian Power Companies and Their
Associated Transmission Companies," dated August 15, 1906, and also a
report on "Existing Water-power Situation at Niagara Falls, so far as Con-
cerns the Diversion of Water on the American Side," dated October 5, 1906.
209
NIAGARA POWER
In the report on transmission from Canada into the United States the
recommendations were :
That permits for the transmission of power to the United States be issued as follows :
Horse-power
Niagara, Lockport & Ontario Power Company, from the Ontario
Power Company 60,000
Electrical Transmission Company, from the Electrical Development
Company 37,500
The Niagara Falls Power Company, from the Canadian Niagara
Power Company 60,000
The American members of the International Waterways Commission filed
a report on the same subject dated September 29, 1906, in which they con-
curred in the recommendations made by Captain Kutz.
In his report on water diversion on the New York side of the river, Captain
Kutz stated:
If it be determined that the amount of water occasionally used for sluicing debris and
ice must be included in any permits that are granted, the interested parties are, in my
opinion, entitled under the law to permits for diversion as follows:
Cubic feet
per second
The Niagara Falls Power Company 8,600
The Niagara Falls Hydraulic Power & Manufacturing Company 6,403
State of New York (at Lockport, New York, through the Erie Canal) 358
The American members of the International Waterways Commission re-
ported on water diversion under date of November 15, 1906. Their report
contained the following recommendation :
We accordingly recommend that permits for the diversion of water from the Niagara
River be granted to The Niagara Falls Power Company for 8600 cubic feet per second
and The Niagara Falls Hydraulic Power and Manufacturing Company for 5850 cubic
feet per second, it being understood that these are average amounts, and that the larger
amounts occasionally required for sluicing may be accumulated by using generally
smaller amounts.
A further hearing on the several applications for permits to transmit elec-
tricity from Canada into the United States was held by Secretary of War
Taft at his office in Washington lasting two days, November 26 and 27, 1906.
At that hearing Francis Lynde Stetson appeared for The Niagara Falls
Power Company; John L. Romer for The Niagara Falls Hydraulic Power
and Manufacturing Company; Paul D. Cravath for Niagara, Lockport &
210
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
Ontario Power Company; Morris Cohn, Jr., for International Railway Com-
pany; John G. Johnson (of Philadelphia) for Electrical Development
Company; A. K. Potter for the commissioners of the state reservation at
Niagara; Frank W. Stevens for the New York Chamber of Commerce;
J. Horace McFarland of the American Civic Association, Dr. John M.
Clarke, New York State Geologist and several others appeared as stated in
the public interest.
PERMITS UNDER THE BURTON LAW
On August 16, 1907, the Secretary of War issued to The Niagara Falls
Power Company (1886) (1) a permit to divert 8600 cubic feet of water per
second from the Niagara River above the falls for use for power purposes,
(2) a permit to receive from Canadian Niagara Power Company, Limited, at
the international boundary line and to transmit from the Dominion of Canada
into the United States 52,500 electrical horse-power.
At the same time a permit for diversion of 6500 cubic feet of water per
second from above the falls was issued to The Niagara Falls Hydraulic Power
and Manufacturing Company. The amount of water so permitted to that
company anticipated provision for certain plant enlargements in process
when the Burton Law was enacted.
A diversion permit for 500 cubic feet per second was issued also to the Lock-
port Hydraulic Company, the diversion to be made through the Erie Canal
to Lockport.
Further permits for transmission of electricity into the United States from
Canada also were issued ( 1 ) to the Niagara, Lockport and Ontario Power
Company in the amount of 60,000 horse-power, (2) to The Electrical Devel-
opment Company of Ontario, Limited, and its distributing agents in the
United States in the amount of 46,000 horse-power, and (3) to the Inter-
national Railway Company in the amount of 1500 horse-power.
UNITED STATES LAKE SURVEY REPORTS
For the guidance of the Congress and the treaty commissioners who were
meantime appointed and were engaged with commissioners on behalf of Great
Britain in formulating a treaty for the control of the waters of boundary
streams between Canada and the United States, at the instance of the Secre-
tary of War exhaustive investigations were undertaken of the effect on the
falls, as well as on the river and the levels of Lake Erie, of the diversion of
water for power purposes both in Canada and in the United States. Surveys,
measurements, and careful studies were made by the United States Lake
Survey whose findings and conclusions were embodied in reports to the Chief
of Engineers, United States Army, by Major (afterwards General) Keller,
211
NIAGARA POWER
Corps of Engineers, United States Army, then in charge of the survey of the
northern and northwestern lakes, dated November 30, 1908, and September
21, 1909, respectively, and transmitted by President Taft to the Congress on
August 21, 1911. They were printed in Senate Document No. 105, Sixty-
second Congress, First Session, under title "Preservation of Niagara Falls."
A further report was made by Colonel Riche, then the successor to Major
Keller in charge of the United States Lake Survey, dated September 11, 1911,
which was transmitted by the President to the Congress on December 7,
1911, and printed under the same title in House Document No. 246, Sixty-
second Congress, Second Session.
The effect on Lake Erie and Niagara River levels of all diversions for
power purposes then being made on the Canadian as well as the American
side, was stated by Major Keller as follows (the amounts being in fractions
of one foot ) :
Lake Erie (Buffalo L. H. gauge) .... .07 of a foot
Niagara River at —
Austin Street 10 "
Tonawanda .16 "
Schlosser's Dock .23 "
Chippawa .48 "
Grass Island .77 "
The change at Grass Island exceeds that at Chippawa because of localized effect due
to the close proximity of the intakes of the two American power companies. With diver-
sions at points in the pool remote from both gauges, the latter should change by an equal
amount. The shut-down of July-August, 1908, also shows that a change of diversion in
the Chippawa-Grass Island pool is accompanied by a corresponding change in outflow
of Lake Erie, amounting to 10 per cent of the change in diversion.
Although the traffic below Tonawanda is insignificant in draft and in amount, the
upper Niagara River is navigable from its head practically to Chippawa and Schlosser's
Dock. ... In inches, the diversion of 19,350 cubic feet per second in the Chippawa-
Grass Island pool reduces the depth at the head of the river % inch, at Austin Street
11/4 inches, at Tonawanda 1% inches, at Schlosser's Dock 2% inches, and at Chippawa
5% inches. The change to and including Tonawanda is insignificant. Below that point
the reduction in depth is greater, but there is still much more than enough depth for
the commerce involved.
In reply to the inquiry of the Chief of Engineers, I would, therefore, state categori-
cally that the diversion of the maximum amount at present authorized on the American
side, a total of 15,100 cubic feet per second, and the additional diversion on the Canadian
side of all the water needed to generate the 60,000 horse-power, at present permitted to
be imported into the United States by the Ontario Power Company, will not injure nor
interfere with the navigable capacity of the Niagara River. ... It is therefore plain
that present authorized diversions in the United States and those now made in Canada,
212
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
have had no effect upon the Niagara River, so far as concerns "its integrity or proper
volume as a boundary stream."
Senate Document 105 (Sixty-second Congress, First Session) , pages 12-13
POWER PLANTS SHUT DOWN IN 1908
The investigations of the United States Lake Survey engineers were assis-
ted by shut-downs of the American power-plants for several hours at a time
in June and July, 1908. The shut-downs of The Niagara Falls Power Com-
pany (constituent) plant were made primarily for the purpose of repairs
in Power-house Number Two extension of its tail-race tunnel. The plant of
The Niagara Falls Hydraulic Power and Manufacturing Company was shut
down simultaneously for the express purpose of assisting the United States
War Department engineers in their measurements of water levels in the river.
The results of such measurements were reported by Major Keller as
follows :
Accordingly, the positive evidence of the shut-down of July-August, 1908, shows
very slight change in the height, and therefore in the volume of the American Falls, due
to the restoration to the upper rapids of some 5600 cubic feet per second. The actual
change, ascertained from the comparison of the means of two 10-day periods, was a rise
of 0.012 foot at the Prospect Point gauge, situated at the American or northeast end
of the American Fall. At gauge, wing dam, nearly opposite the head of Goat Island, the
rise was 0.037 foot. The law of gauge relations, on the other hand, would have made the
rise at Prospect Point 126/560 of the rise at Chippawa, or about 0.026 foot, and at
wing dam 41/56 of the rise at Chippawa, or about 0.068 foot. The effect actually
observed is therefore less than half that which is derived from a consideration of the
law of gauge relations. A diversion of 15,100 cubic feet per second on the American
side would therefore actually lower the American Fall at Prospect Point 0.032 foot, or
about 2 per cent of its average depth. While the change at the middle point of the crest
might perhaps not be the same as that at Prospect Point, it is doubtful whether the dif-
ference would be appreciable. The present authorized diversions of the two American
companies and that at present possible for the Ontario Power Company together will
lower the depth of water on the American Fall 0.052 foot, equivalent to about % inch,
and on the American rapids the lowering will be about 0.30 foot, or 3% inches, and these
changes can not be considered as important.
The effect of a diversion of 15,100 cubic feet at Terrapin Point, at the east end of the
Horseshoe, is shown by the established law of gauge relations to be a lowering of 0.16
foot, and for a diversion of 19,350 cubic feet, which covers all present and immediately
prospective diversions in the Chippawa-Grass Island pool, the reduction in depth will be
0.21 foot, or 2.5 inches. As the depths at Terrapin Point are slight, such a lowering is
of considerable importance. It is, however, at the west end of the Horseshoe Fall that
the most serious effects have been produced. The law of gauge relations shows that a
diversion of 19,350 cubic feet in the Chippawa-Grass Island pool will lower the water
surface at the Canadian end of the great cataract by 0.52 foot. The present diversions of
213
NIAGARA POWER
the Electrical Development Company, the Canadian Niagara Company, and the Inter-
national Railway Company, perhaps aggregating 6700 cubic feet, add at least 0.19
foot to this, so that the total lowering at the Canadian end of the Horseshoe Fall,
due to diversions authorized on the American side and those existing on the Canadian
side, is 0.72 foot or more, a serious change at a locality known to be deficient in depth.
These figures are for an elevation of Lake Erie such as obtained during the summers of
1907 and 1908, when lake stages were relatively high.
Senate Document 105 (Supra), pages 13-14
The report adds :
It is understood that the intention of Congress, as expressed in the act of June 29,
1906, was to preserve to the various power companies rights which had already accrued
through the investment of capital and the construction of fixed plant. At that time,
upon information supposed to be derived from the company itself, the permit for diver-
sion issued to The Niagara Falls Power Company was for a maximum of 8600 cubic
feet per second. The discharge measurements in the company's canal have proved that
at times its diversion exceeds 9350 cubic feet per second. This represents the maximum
measured flow, and corresponds to a bus-bar output of about 72,000 horse-power. With
a safe reserve in each power-house, the switchboard capacity of the existing generators
is about 95,000 horse-power. It is possible then that the diversions needed for a maxi-
mum profitable use of the existing plant of The Niagara Falls Power Company may
reach a total of over 12,000 cubic feet per second. To fix the exact amount would require
further measurement. An increase to the limit of the capacity of the existing tail-race
tunnel may be regarded as a simple act of justice, but it should be conditioned upon a
radical reconstruction of the company's tail-race tunnel and penstocks, so as to insure
the utmost economy in the use of water. At present, this company realizes only about
two-thirds of its available head. In fact, even though no additional diversion were
authorized, since the only rational ground for permitting diversions of any amount
whatever is the resulting economy in the use of coal and other fuel — natural resources
which are by no means inexhaustible — a requirement of the utmost possible economy in
the use of water would not be unfair. The changes in tail-races, penstocks, and in fact
in the entire plant, should be made a subject of close inquiry and regulation. All this
is not intended as a criticism of this company, which was a pioneer in the field, and at a
time when limitation of water consumption was unthought of and seemed unnecessary.
Id., page 16
BURTON LAW RESTRICTIONS ERRONEOUS CALCULATIONS
The American members of the International Waterways Commission, on
whose report to the Secretary of War, dated March 19, 1906, the provisions
of the Burton Law were mainly based, had computed the then existing amount
of water diversion by The Niagara Falls Power Company (constituent) to
be 8600 cubic feet per second, of which about 8000 cubic feet per second was in
use in its 100,000 horse-power electric generating station, Power-houses
Numbers One and Two, and about 600 cubic feet per second in the production
214
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
of hydraulic power by one of its tenant companies (International Paper
Company). The computation was accepted by the Congress in providing in
the Burton Law that no permit should be issued to any one company in excess
of 8600 cubic feet per second.
Soon after the enactment of the law actual operation demonstrated that the
amount of water required to operate those plants fully was approximately
10,500 cubic feet per second. Serious and unintended injustice resulted to
The Niagara Falls Power Company by such limitation to 8600 cubic feet per
second. Its output was thereby reduced some 20,000 horse-power below
former production.
The matter was brought to the attention of the treaty commissioners, who
recognizing also the necessities of the other American power generating com-
pany in framing a treaty proposed that the limit of aggregate diversion on the
American side of the river be raised from 15,600 cubic feet per second, as
limited by the Burton Law, to "a daily diversion at the rate of 20,000 cubic
feet per second."
The results to be expected on the levels of the river and Lake Erie of a
diversion of such an additional 4400 cubic feet per second were shown by
careful computations from Major Keller's report to be approximately as
follows: j ,
Inches
At the crest of the American Falls, less than %
At the Canadian end of the Horseshoe Falls, less than iVia
At Lake Erie, approximately %
(See Hearings before Committee on Foreign Affairs,
January 18, 1912, page 68)
TEEATY WITH GREAT BRITAIN FIXING LIMITS OF DIVERSIONS
A treaty based upon the views of the commissioners was signed at Washing-
ton, D. C, January 11, 1909, and was proclaimed May 13, 1910. Article V
provides as follows :
The high contracting parties agree that it is expedient to limit the diversion of waters
from the Niagara River so that the level of Lake Erie and the flow of the stream shall
not be appreciably affected. It is the desire of both parties to accomplish this object
with the least possible injury to investments which have already been made in the con-
struction of power-plants on the United States side of the river under grants of authority
from the State of New York, and on the Canadian side of the river under licenses author-
ized by the Dominion of Canada and the Province of Ontario.
So long as this treaty shall remain in force no diversion of the waters of the Niagara
River above the falls from the natural course and stream thereof shall be permitted
except for the purposes and to the extent hereinafter provided.
215
NIAGARA POWER
The United States may authorize and permit the diversion within the State of New
York of the waters of said river above the falls of Niagara, for power purposes, not
exceeding in the aggregate a daily diversion at the rate of 20,000 cubic feet of water
per second.
The United Kingdom, by the Dominion of Canada, or the Province of Ontario, may
authorize and permit the diversion within the Province of Ontario of the waters of said
river above the falls of Niagara for power purposes, not exceeding in the aggregate a
daily diversion at the rate of 36,000 cubic feet of water per second.
The prohibitions of this article shall not apply to the diversion of water for sanitary
or domestic purposes, or for the service of canals for the purposes of navigation.
Notwithstanding enlargement by the terms of the treaty of the limits of
water diversion above the falls for power purposes permissible on the New
York side of the river, the Congress by the successive joint resolutions ex-
tending the operation of the Burton Law until March 4, 1913, made no change
in its limitation of the maximum rates of such diversion as originally fixed by
the Burton Law.
216
Part III
UNITED STATES WAR DEPARTMENT
1913-1918
FEDERAL WATER-POWER COMMISSION
License
1921-1925
REQUISITIONS AND CONTROL
The stress of the requirements of the World War and the important part
which Niagara power was to take in assisting its prosecution and winning,
resulted in recommendations by the War Department (1) for immediate
adoption by the Congress of a joint resolution giving the Secretary of War
power to grant permits for additional Niagara diversion within treaty limits,
in amounts required to operate the existing installations, and (2) for the en-
actment of a law permanently regulating Niagara diversion so that the com-
panies there would be justified in making the required large investments in
installing additional generating machinery and reconstructing their plants
to the extent required to utilize the entire head available between the Grass
Island pool and that immediately below the falls.
RIVER AND HARBOR ACT OF 1899
Under date of July 19, 1913, General Bixby, then Chief of Engineers,
United States Army, on behalf of the War Department, addressed identical
letters to each of the New York generating companies, which contained the
following notice and statements :
1. The attention of all persons diverting water or contemplating the diversion of
water from Niagara River for power purposes is invited to the provisions of Sections
10 and 13 of the River and Harbor Act, approved March 3, 1899. Notice is hereby
given that all diversions of water from Niagara River above and below the falls are
considered by this Department as subject to the provisions of those sections, and con-
sequently as unlawful, except so far as recommended by the Chief of Engineers and ap-
proved by the Secretary of War.
2. For the present, no objection is being made by the War Department to existing
diversions so long as the daily average does not exceed that of the permits and diversion
limits which existed last year under the Burton Act ; but any new diversions will re-
quire the specific authority of the Secretary of War. Applications for the necessary
authority to change the former diversions or to make new ones, should be addressed to
the Secretary of War.
No part of the act referred to by General Bixby, however, seemed appli-
cable to the situation at Niagara Falls. The following provision found in
217
NIAGARA POWER
Section 10 referred to apparently had been construed by the War Depart-
ment to be applicable :
And it shall not be lawful to excavate or fill, or in any manner to alter or modify the
course, location, condition, or capacity of, any port, roadstead, haven, harbor, canal,
lake, harbor of refuge, or inclosure within the limits of any breakwater, or of the channel
of any navigable water of the United States, unless the work has been recommended by
the Chief of Engineers and authorized by the Secretary of War prior to beginning the
same.
MOMENTARY MAXIMUM LIMITATION
It is impracticable to operate central generating stations at a 100 per cent
load factor. The effect of the provision of the treaty with Great Britain for
a "daily diversion" at a given rate, i.e., averaging the amounts of water used
at different times during the day, would have afforded considerable relief from
the rigid Burton Law rule, which restricted the use of water to a definite
maximum limitation for every moment.
Under date of May 28, 1914, Secretary of War Lindley M. Garrison ad-
dressed a letter to The Niagara Falls Power Company containing the follow-
ing statement and notice :
The maximum relates not to the daily average quantity diverted, but to the quantity
diverted at any moment. At no time can that amount be exceeded without destroying
the status quo that it is my policy and intention to maintain. You are hereby notified
that excess diversions must cease immediately and that your operations must be so con-
ducted as to keep at all times within the maximum limit, namely, 8600 cubic feet per
second as prescribed by the permit referred to above, issued to you under the provisions
of the Burton Act.
A similar letter was sent to Hydraulic Power Company of Niagara Falls.
Both companies forthwith complied with the terms of the notice, The Ni-
agara Falls Power Company making the following reply to the letter:
The Niagara Falls Power Company
Niagara Falls, N. Y., June 5, 1914.
Honorable Lindley M. Garrison,
Secretary of War,
War Department,
Washington, D. C.
Dear Sir:
We acknowledge receipt at about noon of the 2nd instant of your letter under date of
May 28, 1914 (30089/4 W. D. 57243/2555 Engrs.).
At the earliest practicable moment thereafter steps were taken to regulate diversion
of water by this company within the limits of the permit heretofore issued to it under
the Burton Law, and in accordance with the rules and regulations of your department
in force immediately prior to the expiration of that law on March 4, 1913.
218
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
Upon the expiration of the Burton Law we believed the only rule then restricting such
diversion was that of the International Waterways Treaty, limiting the same to "not
exceeding in the aggregate a daily diversion at the rate of 20,000 cubic feet of water
per second."
Upon March 1913, the then Chief of Engineers orally advised the writer that the
diversion then being made by us was not satisfactory and would not be permitted by
your department, which he claimed had jurisdiction to restrict such diversion under the
provisions of the River and Harbor Act of March 3, 1899, and that until further per-
mits should issue, this company should not exceed a daily diversion at the rate of 8600
cubic feet per second, and all companies must not exceed an aggregate daily diversion
at the rate of 15,600 cubic feet per second. Until the receipt of your said letter we
received no instructions which we understood to be in revocation of the rule then laid
down so clearly.
At all times it has been, and will continue to be, our desire, without waiving our pro-
prietary rights, fully to comply with all provisions of law and with the rules and regu-
lations of your department.
In view of your statement that it is your policy and intention to maintain the status
quo of the Burton Act, we appreciate that discussion is useless ; nevertheless, for your
information and as a matter of record, we desire to bring to your attention at this time
briefly two or three pertinent facts :
(1) The limit of diversion imposed upon this company by the Burton Act, namely,
8600 cubic feet per second, was due to an inadvertent error ; the intention having
been to allow this company to divert the amount of water required for its then ex-
isting plant ; such amount having already been diverted by it prior to the enact-
ment of that law ;
(2) Correction of such unintentional injustice to this company has been recommended
repeatedly by engineer officers of the War Department who have been detailed to
investigate the subject. In the United States Lake Survey Report on this subject
(Senate Document No. 105, Sixty-second Congress, First Session, page 16) in
reference to this company, the statement is made: "An increase to the limit of the
capacity of the existing tail-race tunnel may be regarded as a simple act of justice,"
and on page 139 of the same document: "The desirability as well as the justice of
amending the Burton Act so as to permit The Niagara Falls Power Company to
divert water to the full capacity of its tail-race tunnel are plain" ;
(3) The direction now given by you as to our diversion will have a substantial effect
in hampering the industrial operations of our customers who are citizens of the
United States. Its effect on scenic conditions, of course, is absolutely nil and its
effect upon the navigability and integrity of the Niagara River is infinitesimal.
I have the honor, Sir, to be Yours yery respectfully?
F. L. LOVELACE,
Secretary.
SPECIAL PERMITS FOR BUFFALO
When, because of increases of power use on the Niagara frontier and delays
in the installation of a steam-power generating plant in Buffalo, the power
219
NIAGARA POWER
situation became still more critical, the Secretary of War, upon urgent
requests from Buffalo, issued special permits, effective during parts of the
year 1916 and terminating finally January 1, 1917, to operate the plant of The
Niagara Falls Power Company at nearly its full capacity during certain peak-
load hours of the day, limiting the use of the additional power thereby gen-
erated to Buffalo only, and restricting the production of the plant as before
(continued Burton Law restriction) at all other hours of the day.
Upon requests made in the latter part of 1916, for an extension of such
special permits, the Secretary of War stated, in substance, that after further
consideration he had concluded that he had no authority to extend or to revive
the special permits, although he recognized the critical situation of industries
at Niagara and in the much wider circle of industries throughout the United
States dependent on Niagara power output.
REVOCABLE PERMITS FOR ADDITIONAL DIVERSION
With the approval of the President on January 19, 1917, Public (Joint)
Resolution No. 45, Sixty-fourth Congress, became a law. In addition to cer-
tain penalty provisions, it provided as follows:
That the Secretary of War be, and he is hereby, authorized to issue permits, re-
vocable at will, for the diversion of water in the United States from the Niagara River
above the falls for the creation of power to individuals, companies, or corporations
which are now actually producing power from the waters of said river, in additional
quantities which, with present diversions, shall in no case exceed the capacity of the
generating machinery of the permittee and tenant companies now installed and ready
for operation, nor an amount sufficient to enable the permittee to supply the now existing
hydro-electric demands of the individuals, companies, or corporations which said per-
mittee and tenant companies are now supplying, but not in excess of the capacity of
power-using appliances of said consumers now installed and ready for operation :
Provided, that in no event shall the total quantity of water diverted in the United States
from said river above the falls for power purposes exceed in the aggregate a daily diver-
sion at the rate of twenty thousand cubic feet per second ; And provided further, that
this resolution shall remain in force until the first day of July, nineteen hundred and
seventeen, and no longer, at the expiration of which time all permits granted hereunder
shall terminate, unless sooner revoked ; and nothing herein contained shall be held to con-
firm, establish, or confer in or upon any such permittee any right in or to the water which
he is now diverting or which he may be authorized to divert hereunder.
Immediately upon approval of the resolution (January 19, 1917) the Sec-
retary of War issued "additional" permits to each of the two generating com-
panies on the New York side of the river; the additional permit to The Ni-
agara Falls Power Company (1886) was for a "daily diversion at the rate of
1400 cubic feet per second," to be used with, and in addition to, its diversion at
220
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
the momentary maximum rate of 8600 cubic feet per second as formerly fixed
by the Burton Law; and to Hydraulic Power Company of Niagara Falls for
an additional 3000 cubic feet per second.
Public Resolution No. 8, Sixty-fifth Congress, approved June 30, 1917, ex-
tended the term of the preceding resolution (No. 45 of Sixty-fourth Congress)
until July 1, 1918.
Under authority of a further joint resolution, approved June 29, 1918, the
Secretary of War on July 1, 1918, issued permits to the companies for daily
diversions at the rate of 10,000 cubic feet per second by The Niagara Falls
Power Company (1886) and 9500 cubic feet per second by Hydraulic Power
Company of Niagara Falls. The consolidation of the two companies in
October, 1918, into the present The Niagara Falls Power Company
(mcmxviii) merged these permits, which pursuant to a further joint resolu-
tion, approved in July, 1919, were extended by the Secretary of War to
July 1, 1920.
Both the latter two joint resolutions provided that permits to be issued
thereunder should exceed in no event "in the aggregate a daily diversion at the
rate of 20,000 cubic feet per second," which limitation, it will be observed,
agrees, both in the amount and in the phraseology used, with the provision of
the treaty with Great Britain controlling the limits of diversion above the
falls for power purposes on the New York side of the Niagara River. The
treaty commissioners had recognized the fairness of equalizing through the
hours of the day the necessary momentary inequalities of the load of a genera-
ting plant in practical operation.
Bills dealing specifically with, or intended permanently to regulate, the
diversion of water from the Niagara River for power purposes, were intro-
duced and considered in committee in the sessions of the Sixty-first Congress
(1909-1911) and of each succeeding Congress to and including the Sixty-
sixth (1919-1921 ) . None of the measures became law until the enactment of
the Federal Water Power Act, approved June 10, 1920. That law is general
in scope and applies to the situation at Niagara.
WAR REQUIREMENTS
The use of Niagara power in useful productions was in the course of rapid
growth in 1906 when the Burton Law was first enacted. The demand for
such use very soon outstripped the capacity of the generating plants as restric-
ted by that law. The demand still was increasing rapidly when the entry of
the United States into the World War brought it overwhelmingly beyond the
capacity of the plants even when operated without harmful restrictions in
221
NIAGARA POWER
water use. Many materials were being produced at Niagara which were in-
dispensable for the winning of the war, and there was no limit, practically, to
the demand for power for use in their production.
The responsibility for so critical a power famine may be assigned to the
failure of the Congress in enacting timely and adequate legislation perma-
nently regulating the use of water of the river for power production and fixing
the status of the generating companies in respect of federal jurisdiction and
control.
Subject to assurance of reasonable protection in the additional investment
required, both the generating companies then operating at Niagara at all
times had been prepared to proceed with the construction of additional plants
or to reconstruct existing plants so as to obtain the greatest efficiency in the
use of the water diverted.
In response to inquiries of the War Department made in 1913, The Niagara
Falls Power Company had stated in a letter to the Chief of Engineers, United
States Army, that
No one can be more desirous of meeting any increased demand for power than will
be The Niagara Falls Power Company, the pioneer in the production of hydro-electric
energy for industrial use and long-distance transmission whose enterprise preceded any
demand for electrical power and antedated any and all legal complications. . . .
Preliminary estimates indicate the possibility of supplementing the present works of
The Niagara Falls Power Company so as to utilize to the utmost practicable extent,
between its intake and outlet, the potentiality of the waters by it diverted from the river.
.... To this end, however, an absolutely essential prerequisite would be the approval
of the Federal Government of the right to use the water permanently, or for an adequate
period, and under conditions promising a fair return on such investments.
Later in replying to further inquiries of the War Department, in 1916,
when the prices of the required material and labor had advanced approxi-
mately 50 per cent, that company had further stated in a letter to Major H.
Burgess of the United States Lake Survey, dated September 30, 1916,
Subject to confirmation by the Federal Government of our rights for the necessary
water diversion for such a term and upon such conditions as will render it practicable
to raise the required money, we shall be ready and would like to undertake the work as
soon as the present abnormal conditions of the labor and material markets are adjusted
to a basis that will permit the project to be carried out with due regard to economic
considerations.
GOVERNMENTAL REQUISITION OF ENTIRE PRODUCTION
It soon became necessary to use all the available power for industries most
essential in the conduct of the war.
222
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
The President of the United States, by orders signed by the Secretary of
War under date of December 28, 1917, requisitioned the total quantity and
output of electrical power produced or capable of being produced by the two
generating companies at Niagara Falls, New York, as well as the power
transmitted into the United States from Canada.
Thereafter until the release of the requisition at midnight of November 30,
1918, all electricity generated in the plants of the two companies and all trans-
mitted into the United States from Canada was controlled and distributed
under the direction of General Keller and Mr. Robert J. Bulkley, acting,
through the War Department, for the President of the United States.
CONSOLIDATION OF COMPANIES AND ADDITIONAL DEVELOPMENT
AS A WAR MEASURE
Disregarding the neglect of the Congress up to the time to provide for per-
manent permits and trusting to final recognition of the equities in the case, the
New York generating companies early in the spring of 1918, undertook at
the solicitation of the War Department and the President's power administra-
tors, to agree upon terms of consolidation and with their united resources
rapidly to install an additional 100,000 horse-power generating plant for
expected use in helping in the conduct of the war. General Benedict Crowell,
then Acting Secretary of War, approved the plans, his letter of April 5, 1918,
addressed to Hydraulic Power Company of Niagara Falls stating:
It is my understanding that you will immediately proceed to combine your interests
with those of The Niagara Falls Power Company and the Cliff Electrical Distributing
Company, and that the reorganized corporation will commence the work immediately
and prosecute it diligently.
The importance to the Government of having additional power available for delivery
as soon as may be is well known to you, and I hope and believe that you will leave nothing
undone to complete this development at the earliest possible time.
The new installation was begun forthwith and negotiations between the
officers of the companies involved resulted in consolidation (under agreement
dated September 20, 1918) into The Niagara Falls Power Company
(mcmxviii) /
the federal water power act
On June 10, 1920, the President approved of the act of Congress known
as the Federal Water Power Act, substantially in the form prepared under
direction of members of the Cabinet of President Wilson and submitted in
1 The Roman numerals (mcmxviii) while not part of the legal title serve to distinguish the company
from its constituent corporation of the same name of 1886 and have been incorporated in the corporate
seal of the consolidated company.
223
NIAGARA POWER
1919 to the Sixty-fifth Congress by the President with a recommendation for
its enactment.
During debates on the floor of the House, both in the last session of the
Sixty-fifth and in the first session of the Sixty-sixth Congress, motions had
been made to amend the measure by excluding from its provisions boundary
streams. The debate indicated that the amendments were particularly in-
tended to make the bill inapplicable to the use of the water of the Niagara
River by the generating companies on the New York side of that stream.
Both motions were defeated and the bill as it passed the House applies to the
New York side of the Niagara equally with other navigable rivers in the
United States.
The measure as passed and approved by the President, among other things,
most of which are not particularly applicable to the Niagara situation, pro-
vides in substance :
(1) For a Federal Water Power Commission, composed of the Secretaries of War, the
Interior, and Agriculture.
(2) For licenses to be issued by the commission for periods not exceeding fifty years to
develop and utilize power in or from navigable waters of the United States.
(3) For a reasonable annual charge to be fixed by the commission and paid by the
licensees.
(4) For comprehensive regulatory powers to be exercised by the commission.
(5) For preferential consideration, in the granting of permits, of applications by states
and municipalities provided their plans are equally adapted to conserve and utilize,
in the public interest, the navigation and water resources of the region.
(6) For the establishment of amortization reserves to be applied to the reduction of the
amount of the licensees' net investments.
(7) For "recapture" by the United States at the end of the term of the permit, but on
not less than two years' prior notice to the licensee, and on payment of the fair value
of the property taken and reasonable damages caused by the severance therefrom
of property dependent thereon and not taken ; such values and damages not to in-
clude or to be affected by the value of any lands or property of the United States
licensed under the provisions of the act, or by good will, going value or prospective
revenues, nor are the values allowed to be in excess of the actual reasonable cost.
(8) For the optional issue by the commission at the end of the term, in cases where the
United States does not take over the project, of a new license to the original licensee
upon such terms as may then be authorized by law, or the issue of such new license
to a new licensee, who shall make the same payments to the original licensee and
assume the same obligations as the United States would have been required to make
and assume, if it had taken over the project.
224
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
(9) In cases where the United States does not take over the project and a new license
is not issued, the commission shall issue from year to year to the licensee an annual
license under the terms and conditions of the original license until such time as the
property is taken over or such new license issued.
(10) The Federal Government may at any time when, in the opinion of the President, the
safety of the United States so demands, take over the project for the purpose of
manufacturing nitrates, explosives, or munitions of war, or for any other purpose
involving the safety of the United States ; with provisions for the restoration of the
property unimpaired at the end of any such period and the payment of just and fair
compensation for its use.
The Federal Water Power Act afforded a basis for disposing of the Ni-
agara power question— a subject of debate on the floor and in committees of
Congress since the time of President Roosevelt's message on "The Preserva-
tion of Niagara," of March 27, 1906, failure to settle which had substantially
hindered the progress of extensive beneficial industries and in a considerable
degree lessened the preparedness of the nation for the World War. The settle-
ment thereby effected has contributed largely to the success of the era of
heightened production so necessary for the welfare of this country and the
exhausted nations of Europe.
FEDERAL WATER POWER COMMISSION
Upon application by the company, the Federal Water Power Commission
on March 2, 1921, pursuant to authority vested in it by the Congress in the
Federal Water Power Act, licensed (its license No. 1) The Niagara Falls
Power Company (mcmxviii) "to construct, operate and maintain diversion
structures, water conduits, power-houses, transmission lines, and other project
works, and to develop, transmit, and utilize power from the waters of the
Niagara River as described in *** application."
The license sets forth at considerable length the terms upon which it was
granted, which include, among others:
(1) Authority to the company for a term of fifty years "to divert, within the State
of New York, from the waters of said Niagara River, above the falls of Niagara,
for power purposes, water not exceeding in the aggregate a daily diversion at the
rate of 19,500 cubic feet per second, provided that the maximum diversion in any
calendar day shall not exceed said rate by more than twenty per cent thereof."
(2) Definite fixed dates for beginning and completing the unconstructed portion of the
project works.1
(3) The water to be diverted by the licensee may be utilized in its power stations hereto-
fore built in the city of Niagara Falls, New York, until the licensee shall construct
its "Proposed Addition to Station No. 3 Extension Hydraulic Plant" and as soon as
1 Specifications of dates for commencement and completion of construction were fully complied with.
225
NIAGARA POWER
a new unit or units of its said "Proposed Addition to Station No. 3 Extension Hy-
draulic Plant" shall be installed and ready for operation, the licensee shall utilize
the water so authorized to be diverted by it, in the operation of its plants in such
manner as shall produce the best results, it being intended after the completion
of "Proposed Addition to Station No. 3 Extension Hydraulic Plant" that the ex-
isting Niagara plant shall be maintained and operated as a reserve, emergency, or
peak load plant, or be operated with any increased diversion which the licensee may
hereafter be legally authorized and entitled to divert from the Niagara River for
power development.
(4) The licensee to pay to the United States annual charges determined as provided in
the regulations theretofore adopted by the Federal Power Commission. (These
charges now (1925) amount to 25 cents per horse-power per year on an output
computed under a general formula adopted by the commission.)
(5) Certain provisions for depreciation and amortization of the net investment in the
project and the establishment and maintenance out of surplus earnings of certain
amortization reserves.
(6) Observance of all terms and conditions provided in the Federal Water Power Act in
respect to licenses issued thereunder, including the provision for recapture of the
project works.
The Boundary" Waters Treaty hetween the United States and Great
Britain, proclaimed May 13, 1910, limits the amount of water that may be
diverted on the New York side of the Niagara River, above the falls, to
20,000 cubic feet per second. While the treaty remains in force, unamended,
its limitations are controlling on the Congress and the latter's empowered
agent, the Federal Water Power Commission. Of the allowable 20,000 cubic
feet per second on the New York side, all but 500 cubic feet per second was
granted to The Niagara Falls Power Company for a term of fifty years from
March 2, 1921. That amount of water is now fully used at the highest attain-
able efficiency under the full available hydraulic head between the place of
diversion and where the water is returned to the river immediately below the
American Fall. An additional 225 cubic feet per second of the 500 cubic feet
per second also is in use under terms of a temporary supplemental license,
which it is expected will be made for the full term of the original license.
The electric energy generated by use of the granted water is employed in
useful industries or in public service throughout the considerable part of the
State of New York served by the company or by service companies supplied
directly or through transmitting companies. Due to the fact that Niagara
energy is furnished at prices much lower than the cost of steam power and to
other distinct advantages in use, there still remains an insistent demand for
its supply on the Niagara frontier and elsewhere where it can be economically
transmitted.
226
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
In view of the fact that with, or even without, easily installed remedial
measures, much more water could be diverted around the cataract without
impairing the scenic features of the river and falls, it is obvious that continu-
ance of the present limitations of the Boundary Waters Treaty, unamended,
will result in great economic waste, depriving the industries and communities
of an important section of the United States of their heritage of power so
richly bestowed by nature.
227
Part IV
CANADIAN NIAGARA POWER COMPANY, LIMITED
INCORPORATED BY SPECIAL ACT OF PROVINCE OF ONTARIO
Lease by Commissioners of
Queen Victoria Niagara Falls Park
1892-1925
THE EIGHTS OF CANADIAN NIAGARA POWER COMPANY, LIMITED
The Canadian Niagara Power Company, Limited, the entire capital stock
and all funded obligations of which are held by The Niagara Falls Power Com-
pany, was incorporated by a special act1 of the Legislative Assembly of the
Province of Ontario, Canada.
Its generating station, including water-intake, power-house, and tail-race
discharge tunnel, is located in Queen Victoria Niagara Falls Park which
fronts on the Niagara River at Niagara Falls, Ontario.
The lands occupied and water-rights are leased to the company by the
Province of Ontario under an agreement dated April 7, 1892, executed by
and between the commissioners of the Queen Victoria Niagara Falls Park
and Albert D. Shaw, Francis Lynde Stetson and William B. Rankine. This
lease with certain amendments was confirmed by a further special act2 and
the original lease has been amended by subsequent agreements executed by
the commissioners of the park and by the company and confirmed by acts of
the Ontario Legislative Assembly.
The lease ("agreement") herein referred to, inter alia, provides:
(1) For the purpose of generating electricity and pneumatic power to be transmitted
to places beyond the park, the commissioners grant to the company a license
irrevocable save as therein limited to take water from the Niagara River at certain
specified places, and lead such water . . .to supply works to be erected and con-
structed by the company in buildings and power-houses at a specified location on
the mainland within the park . . . which location shall occupy a tract of land of
not more than 1200 feet in length by not more than 100 feet in width.
(2) The company shall have the further right to excavate tunnels to discharge the water
led from the Niagara River to the said buildings and power-houses so that such
water by means of such tunnels shall emerge below the Horseshoe Fall at or near
the water's edge of the Niagara River.
The original lease provided for a term of twenty years beginning with
May 1, 1892, and was renewable at the option of the company for four addi-
tional successive terms of twenty years each.
1 55 Victoria, Chapter 8, assented to 14th April, 1892.
2 62 Victoria, Chapter 11, Section 35, assented to 1st April, 1899.
228
HYDRAULIC RIGHTS AND FEDERAL RESTRICTIONS
The amended agreement dated July 15, 1899, provides that the rent to
be paid by the company from and after May 1, 1899, up to May 1, 1949, shall
be at the rate of $15,000 per annum, and in addition thereto one dollar per
annum "for each electrical horse-power generated and used, and sold or
disposed of" over 10,000 horse-power up to 20,000 horse-power, and seventy-
five cents for each such horse-power over 20,000 horse-power up to 30,000
horse-power, and fifty cents for each such horse-power over 30,000 horse-
power. After May 1, 1949, the same rentals are to continue unless readjusted
as provided in the agreement.
The amended agreement provides for three successive twenty-year re-
newals, beginning with May 1, 1949, and that the Lieutenant-Governor-in-
Council not less than three years prior to the expiration of the last of such
renewals, on notice to the company, may require the company to continue its
operations for a further period of twenty years.
It will be noted that any limitation on power production of the tenant com-
pany imposed by provisions of the lease is not in terms of water or power
produced but is covered by location, size and character of water-intake, dis-
charge tunnel, turbines, generators, and other essential plant as approved by
the park commissioners. The works so approved include (1925) ten genera-
ting units and one spare unit, having an aggregate rated capacity of 121,000
horse-power.
The rent paid in 1925 to the park commissioners amounted to $67,003.29.
Operation under the lease is somewhat complicated by the fact that the
government of the Dominion of Canada has jurisdiction of power exportation
and some authority under the Boundary Waters Treaty of 1909 which limits
the aggregate quantity of water that may be diverted for power purposes
within the Province of Ontario from the Niagara River above the falls.
Of the total power produced by the Canadian Niagara Power Company,
Limited (1925), about 50,000 horse-power is ordinarily transmitted to the
international boundary for exportation into the State of New York; about
30,000 horse-power is sold and delivered direct to industries in the Province of
Ontario; and 20,000 horse-power is sold and delivered to the Hydro-Electric
Power Commission of Ontario (an administrative department of the Pro-
vincial Government).
In the year 1907 the Dominion of Canada passed the Electricity and Fluid
Exportation Act (6-7 Edward VII, Chapter 16), and since that time the
Department of Trade and Commerce of the Dominion of Canada has con-
tinued from year to year to issue to the Canadian Niagara Power Company,
Limited, an annual license to export or sell for export from Canada electrical
229
NIAGARA POWER
energy at a rate not exceeding during the year the rate specified in the license.
The company now (1925) has two such export licenses which run concur-
rently; one for 45,000 kilowatts (60,000 horse-power) and the other for an
additional 20,000 kilowatts. The additional license provides that all or any
part of the electrical energy exported thereunder shall be subject to recall on
demand for delivery in Canada.
On March 16, 1925, acting under the authorization of Section 10 of the
Electricity and Fluid Exportation Act already referred to, an Order-in-
Council was passed by the Dominion Government imposing an export duty
of three one hundredths of a cent ($0.0003) per kilowatt hour upon power
exported from Canada; said duty to be in addition to any fee payable for a
license for the exportation of power and to be payable in respect of power
exported on and after the first day of April, 1925. The duty paid by the
Canadian Niagara Power Company, Limited, in 1925 (9 months) amounted
to $72,005.15.
230
•
THE CATARACT CONSTRUCTION COMPANY
ORGANIZATION, OPERATION, LIQUIDATION
AND
DISSOLUTION
1889-1909
Chapter XII
THE CATARACT CONSTRUCTION COMPANY
ORGANIZATION, OPERATION, LIQUIDATION
AND DISSOLUTION, 1889-1909
CHAPTER XII
ORGANIZATION
THE Cataract Construction Company was incorporated June 13, 1889,
under the general laws of the State of New Jersey, by Francis Lynde
Stetson and associates, Edward A. Wickes and William B. Rankine, as a
means for carrying out certain power developments at Niagara Falls which
they had under consideration. They were then negotiating for the purchase
of a charter and other rights and property relative to such developments and
particularly the capital stock of the so-called Gaskill company that controlled
the project of Thomas Evershed for the development of power at Niagara.
Among its objects, the company was authorized to carry on the business
of making and letting of contracts to build works of improvement of any
kind, whether railroads, viaducts, aqueducts, dams, tunnels, conduits, reser-
voirs, raceways, mills, manufactories, pipe-lines, cable systems, electric sys-
tems or hydraulic systems.
An amendment specified that its principal office outside of the State of
New Jersey would be situated in the city and county of New York, in
which place, as well as at Niagara Falls in the county of Niagara, and
Buffalo in the county of Erie, all in the State of New York, the company
proposed to carry on operations.
Although the primary object of the company, as indicated by its name,
purposes and locations, was to enter into a contract with the Niagara River
Hydraulic Tunnel, Power and Sewer Company' for the performance of work
of construction at Niagara Falls, yet it had legal power to engage in other
undertakings.
This power company2 was organized particularly to utilize Niagara waters
for power purposes in conformity with a project, prepared therefor by
Thomas Evershed, and acquired for this purpose by the company. The negoti-
ations for the purchase of the shares of this newly organized power company
were prompted by the fact that their ownership would include the plans and
estimates prepared by Mr. Evershed, who was then a director in the company
and its chief engineer.
xName changed to The Niagara Falls Power Company in 1889.
2 See Chapter VII, The Evershed Scheme, Niagara River Hydraulic Tunnel, Power and Sewer
Company, 1886.
233
NIAGARA POWER
PURCHASE OF THE NIAGARA FALLS TOWER COMPANY
Over three years had now elapsed since March, 188G, when the Niagara
River Hydraulic Tunnel, Power and Sewer Company obtained from the
State of New York its special charter, with authority to take an unlimited
quantity of water from Niagara River for power and other purposes, and to
acquire lands and franchises in such developments. Great activity was mani-
fested by the officers and directors of this power company to secure the
necessary capital to finance their enterprise, by the sale of stock and later by
the sale of first mortgage bonds, both of which were offered, unsuccessfully,
in the leading financial centers of this country and the bonds in London. In
the course of such negotiations the project had been presented to Francis
Lynde Stetson, lawyer, of New York City, who manifested some interest in
the enterprise and pursued, with a few associates, several lines of investiga-
tion that led to his obtaining an option to purchase the entire capital stock of
the company.
This option was not availed of and its term lapsed without action. After
nearly a year of study of some of the legal, business and engineering questions
involved in the project, it was decided in 1889 by the Stetson associates in
the organization, to proceed with the enterprise as a hydraulic power propo-
sition, differing from those in New England in its magnitude and the methods
of development necessitated by the location of the falls and the city, at the
angle of the Niagara River.1 Negotiations were resumed in the spring of
1889 and a contract was made by The Cataract Construction Company,
organized expressly for this purpose, with the stockholders of the Niagara
company to purchase all their shares. The cataract company entered into
a preliminary agreement with the Niagara company, under date of July 5,
1889, for the construction of its hydraulic plant in consideration of its capital
stock and bonds to be issued in payment therefor.
Further agreements were executed between the two companies as the
project developed, under which the cataract company became the repre-
sentative of the Niagara company, charged with the designing, financing and
constructing of the plant.
Pursuant to the definite plans adopted during 1889 and 1890, an im-
portant area of land was acquired by the cataract company, favorably located
for the development of the power enterprise.
On December 31, 1890, The Cataract Construction Company offered to
sell and transfer to the Niagara company all its lands in the town of
Niagara, consisting of 1237 acres (1200 upland and 37 under water) at a
1 See Chapter VIII, The Evershed Tunnel Project, Investigation and Modification, 1889-1890.
234
THE CATARACT CONSTRUCTION COMPANY OF 1889
valuation of $2,437,000, payable in $1,996,400 par value of 19,964 shares,
being the whole capital stock authorized, less the qualifying shares of the
directors of the Niagara company, together with $440,000 par value of bonds
of the Niagara company. This proposal was accompanied by numerous
appraisals of the lands by local and other experts familiar with the property.
The proposal was accepted by the terms of a fourth Niagara-cataract contract,
that was then authorized to be executed.
Further investigations followed an invitation to financial interests to join
the cataract group and a formal agreement was made in lieu of the pre-
liminary agreement of July 5, 1889, with the Niagara company.
By an agreement of January 17, 1890, a "stock subscription" was made
to an increase of 400 shares of the capital stock of The Cataract Construction
Company at its par value of $50 per share, and a "money subscription" was
also made to $2,900,000 of the proposed first mortgage bonds of The Niagara
Falls Power Company at 90 per cent of their par value, constituting a total
cash subscription for the purposes of The Cataract Construction Company
of $2,630,000.
The agreement provided that any and all profits received or realized by the
cataract company in the performance of its construction contracts should
go and belong to that company and all the stockholders thereof would share
pro rata therein according to the number of shares held by them.
The bonds as earned and received from the Niagara company were to be
deposited with a committee of three persons appointed by a majority in
interest of the money subscribers, said committee being empowered to hold,
manage and sell the bonds for account of the subscribers.
LEGALITY OF PROCEEDING OF CATARACT COMPANY
Prior to the execution of the agreements and contracts of The Cataract
Construction Company of July 5, 1889, legal opinions concerning the
charters of the Niagara River Hydraulic Tunnel, Power and Sewer Com-
pany and of The Cataract Construction Company, and the contracts be-
tween the Niagara and cataract companies, and the Niagara stockholders and
the cataract company, were furnished to persons in interest.
The opinion of Francis Lynde Stetson of June 13, 1889, concludes as
follows :
I am of opinion that the Niagara company and its intending contractors may enter
into a construction contract, as before indicated, for stock and bonds containing proper
provisions waiving all individual liability of stockholders and bondholders.
235
NIAGARA POWER
Victor Morawetz, in his letter of July 1, 1889, referring to the afore-
described documents, stated:
I am of opinion that no liability would result from the issue of stock and bonds as
proposed.
Charles E. Tracy stated July 3, 1889, that he had "examined the foregoing
papers and opinions of counsel and concurs in the views expressed by them."
ORGANIZATION OF SUBSCRIBERS AS STOCKHOLDERS
At the meeting of subscribers, February 6, 1890, for the purpose of com-
pleting organization, it was recommended that The Cataract Construction
Company should
increase to eleven its board of directors, then consisting of:
Francis Lynde Stetson Edward A. Wickes
William B. Rankine
by the election of eight additional directors, viz:
Edward D. Adams Walter Howe1
George S. Bowdoin Charles Lanier
Charles F. Clark D. O. Mills
A. J. Forbes-Leith ■ Frederick W. Whitridge
and an executive committee composed of :
Walter Howe D. O. Mills
Charles Lanier Francis L}Tnde Stetson
Frederick W. Whitridge
It was also recommended to elect the following officers :
President Edward D. Adams
( Francis Lynde Stetson
Vice-presidents } A
Secretary William B. Rankine
Treasurer George H. Kent
It was further recommended to appoint as committee of bankers,
representing "money subscribers" under Subscription Agreement
of January 17, 1890
George S. Bowdoin, of Drexel, Morgan & Company
John Crosby Brown, of Brown Brothers & Company
Charles Lanier, of Winslow, Lanier & Company
1 Died in 1890; succeeded by Joseph H. Larocque.
236
THE CATARACT CONSTRUCTION COMPANY OF 1889
and to proceed with the preparation, execution and performance of
a contract with The Niagara Falls Power Company as contemplated
in the agreement of January 17, 1890.
At a meeting of the cataract stockholders, action was taken as requested
by the "money subscribers."
The first board of directors, just named, comprised eleven stockholders
representing nearly all the capital stock of The Cataract Construction Com-
pany. They were responsible pioneers of the newly formed enterprise,
closely united in a purpose, and themselves serving as voussoirs of a system,
as in a true arch1 that, as they say in India, "never sleeps," where all stones
are of equal importance, each supporting its burden, interlocking firmly
although differing in form while similar in substance, and all co-operating as
a unit. Such were the first directors and their successors, in all twenty-one
different persons, serving as directors and officers during twenty-nine years
of the undertaking.
With the exception caused by the removal of residence permanently to
England, and several withdrawals on account of ill health, no director resigned
his office, and otherwise death alone permitted the selection of new associates
upon the company's board.
At the annual meeting, June 4, 1901, of the stockholders of The Niagara
Falls Power Company, the number of directors was increased to thirteen,
at which number it remained. The board of directors then elected consisted
of the following stockholders:
The personnel of the board of directors of The Cataract Construction
Company and of The Niagara Falls Power Company, into which latter the
directors of the former were elected upon the completion of their construction
undertaking, was changed from time to time by elections to fill vacancies, so
that on September 20, 1918, the date of the joint agreement of consolidation
with the Hydraulic Power Company of Niagara Falls, the board of directors
Edward D. Adams
John Jacob Astor
George S. Bowdoin
Daniel O'Day
William B. Rankine
Francis Lynde Stetson
Frederick W. Whit ridge
Darius O. Mills
Victor Morawetz
Charles F. Clark
Charles Lanier
Joseph H. Larocque
Edward A. Wickes
1 See end of this chapter.
237
NIAGARA POWER
of The Niagara Falls Power Company that surrendered its control to the
owners of the hydraulic company was as follows:
ORIGINAL DIRECTORS OF 1890
REMAINING IN 1018
Edward D. Adams
Charles Lanier
Francis Lynde Stetson
ADDITIONAL DIRECTORS ELECTED TO FILL VACANCIES
Nicholas Biddle Victor Morawetz
Charles D. Dickie Robert W. Pomeroy
Le Grand S. De Graff De Lancey Rankine
Ogden Mills Carlton M. Smith
Edward T. Stotesbury
OFFICERS
THE NIAGARA FALLS POWER COMPANY
Stacy C. Richmond, President and Director
Philip P. Barton, Vice-president and General Manager
Frederick L. Lovelace, Secretary
W. Paxton Little, Treasurer
CANADIAN NIAGARA POWER COMPANY, LIMITED
A. Monro Grier, President
ADDITIONAL LEGISLATION
The novel methods necessarily adopted in the introduction of central power
stations, inlet-canals, and discharge tunnels, also in the acquisition of the
rights-of-way for electric power transmission lines, over, across and under
the Erie Canal and public thoroughfares, required the exercise of corporate
powers not provided in the general laws of the State of New York. A special
law had been enacted by the legislature to meet these requirements so far as
they could be anticipated in 1886. As additional powers were seen to be
necessary, amendments to the original special act were granted and the public
approved of these encouragements to the company, the success of which meant
so much to the prosperity of the community.
FIVE AGREEMENTS BETWEEN THE CATARACT CONSTRUCTION COMPANY AND
THE NIAGARA FALLS POWER COMPANY
The relations between The Cataract Construction Company and The
Niagara Falls Power Company were prescribed by five agreements, executed
238
THE CATARACT CONSTRUCTION COMPANY OF 1889
on and between July 5, 1889 1 and April 27, 1891. They were occasioned by
the same reasons for which the charter of The Cataract Construction Com-
pany was amended about six months after its original filing in 1889. The
charter of The Niagara Falls Power Company of March 31, 1886, was
amended five times, the last on April 25, 1893, and the permits issued by the
Superintendent of Public Works of the State of New York, under which the
transmission line to Buffalo was established, constituted a series of seven offi-
cial certificates authorizing action, beginning August 30, 1895, and approving
assignment of the completed line, October 14, 1898, to the Cataract Power
and Conduit Company of Buffalo.
The activities of the group of pioneers operating at Niagara Falls from
1889 to 1898 were manifested in the aforedescribed documents. They indi-
cated advances in the development of the enterprise, in the solution of the
Niagara problem, the introduction of new agencies for power development
and use affecting the interests of a large population and prompting state
and municipal legislation to protect the people and at the same time to en-
courage the promoters in their original work, that promised much to industries,
values, taxation and civilization.
The five agreements between the cataract and Niagara companies placed
grave responsibilities upon the cataract company, which became the agent
of the Niagara company. Upon it devolved the scientific investigations, the
adoption of new systems of engineering, the selection of wise and experienced
advisers and assistants, and the provision of a large amount of capital for the
proper development of the great work undertaken.
PURCHASE OF FILIAL COMPANIES
The Cataract Construction Company, acting upon the authority granted
by the amendment to its charter, to acquire and administer the securities of
other companies affiliated in interest with the objects of the cataract in-
corporation, had purchased, by the terms of its agreement of July 5, 1889, with
The Niagara Falls Power Company and its stockholders, the entire capital
stock of that company. It later acquired the entire capital stocks of the fol-
lowing companies :
Lewiston Water Supply Company
Organized under a special charter from the State of New York
giving exclusive rights to take water from the Niagara River
for power and other purposes. This company owned the report
and plans of J. T. Fanning for power development at Niagara
1 See page 234.
239
NIAGARA POWER
on a grand scale. No action was taken under this charter,
which expired in 1893 by limitation.
Niagara Falls Water- Works Company
Organized under the general laws of the State of New York and
engaged in supplying potable water to the city and citizens of
Niagara Falls under a contract with that municipality. This
company was expanded in its resources and business, and was
subsequently acquired by the Girard Trust Company of Phila-
delphia, for account of the Western New York Water Com-
pany.
Niagara Junction Railway Company
Organized, financed and its property constructed by the cataract
company, which retained a majority of its capital stock.
Niagara Development Company
Organized, financed and its property improved by the cataract
company, which held a majority of its capital stock, that was
subsequently exchanged for shares of The Niagara Falls Power
Company, the parent company.
Canadian Niagara Power Company
Organized under a special charter granted by the Government
of the Province of Ontario, Canada, to develop power within
the Queen Victoria Niagara Falls Park from the waters of
Niagara River under terms of rental for use of a prescribed
area. The control of 60 per cent and later the balance of the
capital stock were acquired.
Four optional agreements were approved between the Niagara company
and Frank W. Hawley, of Pittsford, New York, providing for the trans-
mission of electrical power to Rochester, Syracuse, Utica, Albany and points
between. These agreements were assigned to the Cataract General Electric
Company, organized by Mr. Hawley and his associates for this purpose.
The officers of the company were authorized to make similar contracts for
the delivery of electrical power in Lockport, Wheatfield, Tonawanda and
North Tonawanda.
These agreements were designed to encourage experimental work by
Mr. Hawley and his associates, and to determine the general terms upon
which they might rely, should they succeed in their negotiations and desire
a contract for the purchase of electrical power for transmission and distribu-
tion. These efforts were not successful.
240
THE CATARACT CONSTRUCTION COMPANY OF 1889
TKANSMISSION FRANCHISES AND CONSTRUCTION PLANS
In the meantime the organization of The Cataract Construction Company
had been completed and preparation for construction was being pushed
forward with an expansion of the plans and objects. The great strides being
made in all things pertaining to hydro-electric development stimulated the
minds of all concerned, and, in the winter of 1891, it became evident that re-
course should again be had to the law-makers of the state, especially for
enlarged powers in the means of transmission, for extension of the territory
within which electricity could be transmitted, and for further rights of the
company therein.
The line of the main tunnel was determined September 12, 1890, by The
Niagara Falls Power Company under the terms of its contract of April 1,
1890, with The Cataract Construction Company:
Beginning with the opening or portal at the water edge below the upper Suspension
Bridge on lands lately owned by Jane S. Townsend and extending thence under the
village of Niagara Falls in a straight line southeasterly 6700 feet more or less to the
lands on the Niagara River lately owned by Myron H. Kinsley, with shaft sites (1) at
the junction of Falls and Erie streets in said village, and (2) lots numbers 8, 10, 12
and 14 Tenth Street, according to the plans on file in the office of this company at
Niagara Falls.
The sub-contract of The Cataract Construction Company for the construc-
tion of the first section of the work was approved September 12, 1890.
LIQUIDATION AFTER TEN YEARS OF ACTIVITY
The activities of The Cataract Construction Company continued for ten
years as the agent and attorney of The Niagara Falls Power Company, until,
upon the demonstration of success of the engineering plans adopted, including
the transmission of electric power to Buffalo, the cataract company sur-
rendered its undertaking and withdrew from active operations, the Niagara
company taking over the entire management of the property, and the officers
of the cataract company assuming their relative positions in the Niagara
company. (The cataract company held its capital intact for use in case of
need by the Niagara company until 1910, when it liquidated and surrendered
its charter. )
MUTUAL RELEASES
An agreement was entered into under date of May 31, 1899, between The
Cataract Construction Company and The Niagara Falls Power Company,
cancelling the five construction contracts existing between them and creating
mutual releases by each company to the other. The execution of this agree-
ment was approved by the stockholders of both companies, and proceedings
241
NIAGARA POWER
were taken to effect a final and complete settlement, adjustment and termina-
tion of all contract relations between the two companies.
The relations between The Cataract Construction Company and The Ni-
agara Falls Power Company had been established from time to time by
mutual contracts as the desirability therefor arose. Many difficult problems
had been sufficiently solved after the ten years of activity to justify definite
action by The Niagara Falls Power Company in the adoption of a program
of capitalization, with share and bond issues that would provide sufficient
resources for its financial requirements.
In order to give the enterprise, at the concluding stage of its construction,
the credit that it was entitled to receive and might need in its finance and dis-
tribution of securities, by publicly associating with The Niagara Falls Power
Company the names of its original owners, as an indication of its strength
upon which intending users of its power development might confidently rely,
it was decided to replace the local trustees at Niagara who sold their interests
to The Cataract Construction Company in 1890, by the election to the board
of The Niagara Falls Power Company the directors of The Cataract Con-
struction Company who had represented the ownership that would there-
after alone be responsible for the construction and management.
The annual meeting of the stockholders of The Niagara Falls Power Com-
pany, on June 6, 1899, was therefore availed of to make these changes in its
official organization. The directors and officers of The Niagara Falls Power
Company elected at that time were as follows:
ELECTION OF CATARACT DIRECTORS AND OFFICERS TO
BOARD OF THE NIAGARA FALLS TOWER COMPANY
OFFICERS
President
Darius O. Mills
Secretary
F. L. Lovelace
Assistant Secretary and Assistant
Treasurer
W. Paxton Little
First Vice-president
Edward A. Wickes
Second Vice-president and Treasurer
William B. Rankine
DIRECTORS
Edward D. Adams
John Jacob Astor
George S. Bowdoin
Joseph H. Larocque
Darius O. Mills
William B. Rankine
Francis Lynde Stetson
F. W. Whitridge
Charles F. Clark
Charles Lanier
Edward A. Wickes
242
THE CATARACT CONSTRUCTION COMPANY OF 1889
EXECUTIVE COMMITTEE
Edward D. Adams Francis Lynde Stetson
Charles Lanier Darius O. Mills
F. W. Whitridge
At this time it was ordered that the
First Vice-president have charge of the New York office, and that the
Second Vice-president have charge of the Niagara office, and make the same his
headquarters :
that the books of the company be kept at the Niagara office, and that there be kept in
the New York office summarized accounts from which statements could be made at any
time of the financial condition of the allied companies, their earnings, income and
condition.
REVIEW OF ACTIVITIES
At a meeting of the directors, December 20, 1899, called for the purpose
of closing the affairs of The Cataract Construction Company, it was recorded
in the minutes that
this board reviews with satisfaction its work of construction now completed under
contracts with The Niagara Falls Power Company. In the important preliminary in-
vestigations here and abroad, of the many and novel questions arising in connection with
the plans for the development of Niagara power ; in the strengthening of the power
company's comprehensive corporate rights and franchises; in the judicious conduct,
during the past ten years, of its various works of construction ; in the attracting of
many important industries now using that power, and in the accomplishment of a suc-
cessful transmission of power to Buffalo, this board recognizes and desires officially to
acknowledge its deep sense of obligation for the valuable services rendered to it and to
the company, without salary, by its first vice-president, Francis Lynde Stetson, whose
able counsel, executive ability and continuous devotion to its interests have contributed
so largely to the success of the Niagara enterprise.
It was
Resolved: That the official thanks of the company and of this board are hereby
tendered to Francis Lynde Stetson, its first vice-president, for such services, and that
this minute be inscribed upon the records of the company.
An engrossed copy of this record was presented to Mr. Stetson, bearing the
signatures of all his associate directors and accompanied by an imported
salver of old English silver suitably inscribed.
243
NIAGARA POWER
DIRECTORS AND OFFICERS AT LIQUIDATION
Edward D. Adams, President
Francis Lynde Stetson, First Vice-president
Edward A. Wickes, Second Vice-president
William B. Rankine, Secretary and Treasurer
John Jacob Astor
George S. Bowdoin
Charles F. Clark
Charles Lanier
Joseph H. Larocque
Darius Ogden Mills
Frederick W. Whitridge
EXPENDITURE AND ITS INCOME
The circular of The Cataract Construction Company of September 30,
1899, to the subscribers under the original agreement dated January 17, 1890,
stated:
The construction of the principal works of The Niagara Falls Power Company by
The Cataract Construction Company has been completed and the several construction
contracts between those companies have been terminated and cancelled. The Cataract
Construction Company, therefore, is now prepared to go into liquidation and to make
distribution among its stockholders of its remaining assets.
At the beginning of the year 1900, The Cataract Construction Company,
that had been in full charge of the work since 1890, acting as agent of The Ni-
agara Falls Power Company, initiating development and financing construc-
tion, surrendered its authority and proceeded to liquidate its assets for the
payment of all liabilities and the distribution of its profits.
At the period of withdrawal of the cataract company from activity in
preparation for liquidation and dissolution, the works of the Niagara company
consisted of eight power units of 5000 horse-power each, operating under
leases of 42,575 horse-power, and producing $100,000 of surplus income over
operating expenses and interest charges on about $9,000,000 of bonds issued
and outstanding.
In anticipation of possible extensions of the enterprise for which the ex-
perience, credit and organization of The Cataract Construction Company
might again be useful to the interests of The Niagara Falls Power Company,
the corporate organization and the share capital of The Cataract Construc-
tion Company were maintained, but without employment, until April 1, 1909,
244
THE CATARACT CONSTRUCTION COMPANY OF 1889
when the capital, with accrued interest, was distributed to the stockholders and
the charter was surrendered to the state.
STOCKHOLDERS AND THEIR CONTRIBUTIONS OF CAPITAL
The Cataract Construction Company's capital stock of $25,000 was all
subscribed for and fully paid for in cash at its par value in 1890. This capital
was repaid when the charter was surrendered in 1909.
Subscriptions by the stockholders were also made at par for the preferred
shares of the Development and Railway companies, that were exchanged ten
years thereafter, at par and accrued interest, for $674,000 par value of The
Niagara Falls Power Company, at par.
The shareholders received at various times pro rata distributions of the
company's surplus earnings, amounting to $264,750 in cash, $250,000 in par
value of the first mortgage 5 per cent bonds of The Niagara Falls Power
Company, $1,800,000 in par value of its capital stock and the privilege, pur-
suant to the terms of the original syndicate agreements of 1890, to subscribe
to $7,196,000 of The Niagara Falls Power Company bonds at 90 per cent
of their par value.
During the years from 1890 to 1900, there was contributed by the stock-
holders of The Cataract Construction Company, in cash, to the capital funds
of the enterprise the total amount of $7,044,500 for which they received in
dividends and cash from subscriptions the following securities of
The Niagara Falls Power Company, viz:
$8,832,000 first mortgage 5 per cent bonds
3,974,000 capital stock, par value, and
289,750 cash, equivalent to par or $100 per share for the
capital stock, and 31.5 per cent for the par value of
the bonds.
245
Main Tunnel Intersection by Wheel-pit Discharge Tunnel,
Both of Same Size and Form
THE CATARACT
THE NIAGARA
CONSTRUCTION COMPANY
FALLS POWER COMPANY
PORTRAITS
OF
PIONEER DIRECTORS AND OFFICERS
SUCCESSOR DIRECTORS
AND OFFICERS
CANADIAN PIONEER DIRECTOR
AND PRESIDENT
PERSONNEL
OF CONSTRUCTION AND POWER COMPANIES
In illustrating this chapter with the photographs of these colleagues, it
has seemed appropriate to associate their portraits with symbols of their im-
portance in the combination of which they formed the principal part. These
symbols are some of the cut granite stones in the arch of the intersection, at
an angle of sixty degrees, of the tail-race horseshoe tunnel from the wheel-
pit slot under the Power-house Number One, with the main outlet horseshoe
tunnel of the same dimensions discharging into the Niagara River. The
symbol-stones under the following portraits are numbered to correspond with
the numbers on the same stones in the arch on page 246.
With the exception of the four pioneers that constituted La Partie Carree, the por-
traits have been grouped as pioneer and successor directors and officers.
Edward Dean Adams
*Edward A. Wickes
*John Jacob Astor
*John Crosby Brown
*Walter Howe •
* Joseph H. Larocque
*Darius Ogden Mills
*Nicholas Biddle
*Temple Bowdoin
*Charles D. Dickie
Victor Morawetz
De Lancey Rankine
*Carlton M. Smith
*Charles A. Sweet
Frederick L. Lovelace
A. Monro
*Francis Lynde Stetson
*William Birch Rankine
*George S. Bowdoin
*Charles F. Clark
*Charles Lanier
*Leith of Fyvie
*Frederick W. Whitridge
Le Grand S. De Graff
Arthur H. Masten
Ogden Mills
Robert W. Pomeroy
*Stacy C. Richmond
E. T. Stotesbury
George H. Kent
YV. Paxton Little
Grier
* Deceased
NIAGARA POWER
LA PARTIE CAREEE
Edward Dean Adams
President
The Cataract Construction Company
Director
The Niagara Falls Power Company
Francis Lynde Stetson
Vice-president
The Cataract Construction Company
Director
The Niagara Falls Power Company
PIONEER OFFICERS AND DIRECTORS
250
THE CATARACT CONSTRUCTION COMPANY OF 1889
LA PARTIE CAREEE
Edward A. Wickes
Vice-president
The Cataract Construction Company
President
The Niagara Falls Power Company
William Birch Rankine
Secretary
The Cataract Construction Company
Treasurer
The Niagara Falls Power Company
PIONEER OFFICERS AND DIRECTORS
251
NIAGARA POWER
THE CATARACT CONSTRUCTION COMPANY OF 1889
IV
PIONEER DIRECTORS
25:}
NIAGARA POWER
Walter Howe Charles Lanier
Director Trustee
The Cataract Construction Company "Money Subscribers"
Director
The Cataract Construction Company
Director
The Niagara Falls Power Company
v
PIONEER DIRECTORS
254
THE CATARACT CONSTRUCTION COMPANY OF 1889
NIAGARA POWER
Darius Ogden Mills Frederick W. Whitridge
Director Director
The Cataract Construction Company The Cataract Construction Company
President Director
The Niagara Falls Power Company The Niagara Falls Power Company
vii
PIONEER DIRECTORS
256
THE CATARACT CONSTRUCTION COMPANY OF 1889
SUCCESSOR DIRECTORS
257
NIAGARA POWER
IS
SUCCESSOR DIRECTORS
258
THE CATARACT CONSTRUCTION COMPANY OF 1889
SUCCESSOR DIRECTORS
259
NIAGARA POWER
XI
SUCCESSOR DIRECTORS
260
THE CATARACT CONSTRUCTION COMPANY OF 1889
De Lancey Rankine Stacy C. Richmond
Treasurer, 1891-1893 President, 1917-1918
The Niagara Falls Power Company The Niagara Falls Power Cosipany
xii
SUCCESSOR DIRECTORS AND OFFICERS
261
NIAGARA POWER
Carlton M. Smith
Director
The Niagara Falls Power Company
E. T. Stotesbury
Director
The Niagara Falls Power Company
SUCCESSOR DIRECTORS
262
THE CATARACT CONSTRUCTION COMPANY OF 1889
SUCCESSOR DIRECTOR AND OFFICER PIONEER DIRECTOR AND OFFICER
Charles A. Sweet George H. Kent
Vice-president Director
1894-1898
The Niagara Falls Power Company
The Cataract Construction Company
Treasurer
The Cataract Construction Company
DIRECTORS AND OFFICERS
263
NIAGARA POWER
THE CATARACT CONSTRUCTION COMPANY OF 1889
A. Monro Grier
Director
The Cataract Construction Company
President
Canadian Niagara Power Company
xvi
CANADIAN
PIONEER DIRECTOR AND PRESIDENT
265
The Granite Voussoir Stones for the Tunnel Intersections Involved
Problems of Stereotomy Rarely Equalled in Complexity
ENGINEERING ORGANIZATION
THE CATARACT CONSTRUCTION COMPANY
1890-1900
THE NIAGARA FALLS POWER COMPANY
1900-1918
Chapter XIII
One of our pressing duties as engineers consists in
devoting ourselves to the most serious consideration of
applying all possible water-power to supplement the
work of coal, and so reduce consumption or increase
the utility of our most important asset.
Sir Dugae Clerk, K.B.E., F.R.S.
Chairman of Conjoint Board
of Scientific Societies
Report on Water-power in the
British Empire, 1922
ENGINEERING ORGANIZATION
CHAPTER XIII
THE PROBLEM
THE many questions, all of much importance, that surrounded the problem
of harnessing Niagara, prompted the associates considering the enterprise,
during the year 1889, to seek technical advice from engineers who had special-
ized in their professions and had already achieved success in their chosen fields.
It was recognized that the problem was novel in many ways. Many persons
had boldly attacked it but all had failed; their experiences were interpreted
by their successors as indicating what should be avoided rather than as show-
ing the way for further efforts to solve the problem.
Some of the impressive facts to be kept constantly in mind were :
Water similar in quantity and velocity had not yet been controlled
for power use.
The New York State Reservation on the river bank restricted ap-
proach for about IY2 miles, both above and below the Great Falls.
The change of the river's course at the falls created a right angle
in the bordering lands that attracted settlers, this property being
considered desirable for residence as well as for manufacturing,
because of its nearness to the water and its height above the river
for power development.
The top-soil to an average depth of about ten feet, covered horizon-
tal layers of hard limestone and of shale, that required blasting
for excavations.
ENGINEERING PROGRESS
Progress may be recapitulated in the following brief paragraphs :
The preliminary investigations1 in 1889, by conference with experts were
in the nature of friendly counsel and opened the vista of doubt and difficulties.
Thomas A. Edison, Dr. Henry Morton, of Hoboken, and Dr. Coleman
Sellers, of Philadelphia, were among the first professional engineers and
scientists retained to examine the documents submitted and to advise as to the
wisest course for an exhaustive study of the enterprise.
Clemens Herschel, of Holyoke, hydraulic engineer, was also called in to
assist in the analysis of the claims made for the project under examination.
As soon as it became apparent that electricity in its latest developments
had taken its place for consideration by the side of pneumatic and hydraulic
transmission of power, Prof. Henry A. Rowland of Baltimore, physicist,
was retained as adviser.
1 Reported at length in Chapter VIII.
269
NIAGARA POWER
Dr. Coleman Sellers, who had assisted in investigating the subject in the
latter part of 1889, was appointed consulting engineer of The Cataract Con-
struction Company (subsequently chief engineer) and chief engineer of The
Niagara Falls Power Company, from January 1, 1890, and immediately
devoted himself to a thorough understanding of the local situation at Niagara,
John Bogart
Consulting Engineer
1890-1893
the past attempts to utilize the waters of the river and the project of Thomas
E vershed for water-power development that had been acquired by the Niagara
River Hydraulic Tunnel, Power and Sewer Company which was then under
investigation by a financial group in New York.
John Bogart, of Albany, New York, state engineer, then engaged in
measuring the recession of the Great Falls, was retained as consulting engineer
to prepare a detailed and large-sized map of the location under consider-
ation, showing the contour lines on land and under water, to facilitate the
270
ENGINEERING ORGANIZATION, 1890-1918
preparation of plans for construction, the probable costs of which were
uncertain and of great interest at that time from a financial point of view.
In this work he was assisted by Albert H. Porter, a civil engineer, recently
of the engineering staff of the New Croton Aqueduct of New York, who
was appointed resident engineer at Niagara Falls.
Albert H. Porter
Resident Engineer
The Cataract Construction Company
Mr. Bogart and Mr. Porter assisted Dr. Coleman Sellers, chief engineer,
in his organization of the engineering staff of the company; Clemens Herschel,
the hydraulic engineer, also co-operating in this work.
While each of these engineers presented one or more written reports, they
all attended personal conferences that greatly enlightened the investigations
and facilitated the formulation of constructive plans for the year 1890.
As soon as it was determined to proceed with the Niagara project, to the
extent, at least, of constructing the first section of the tunnel, a 20,000
271
NIAGARA POWER
horse-power development for distribution, a group of engineers were selected
that were competent to advise the directors of The Cataract Construction
Company, under the leadership of Dr. Coleman Sellers.
NIAGARA ADVISORY BOARD OF ENGINEERS
This organization was made by Dr. Coleman Sellers, as chief engineer, for
the purposes of considering formally, at recorded meetings and otherwise,
the various questions that came before its members for determination as the
policies of The Cataract Construction Company were developed by the
International Niagara Commission and other scientific advisers and were
submitted to the advisory board of engineers for consideration in application
to the local conditions and prospective requirements.
The advisory board of engineers was organized from among those enlisted
in the services of the two companies, consisting of
Dr. Coleman Sellers, Chairman, Chief Engineer of The Niagara
Falls Power Company
John Bogart, Secretary, Consulting Engineer of The Cataract
Construction Company
George B. Burbank, Chief Engineer of Construction, of The
Cataract Construction Company
Clemens Herschel, Hydraulic Engineer, of The Cataract Con-
struction Company
Albert H. Porter, Resident Engineer, of The Cataract Construc-
tion Company
Theodore Turrettini, Foreign Consulting Engineer, of Geneva,
Switzerland, joined in 1891.
Dr. Sellers represented the cataract company and its allied interests upon
the International Niagara Commission, a full account of which is given in
Chapter X; and Colonel Turrettini represented thereon the engineering
organizations of Switzerland and became the foreign representative of the
cataract company after the disbandment of the commission.
The advisory board of engineers held its first meeting February 27, 1890,
and continued its deliberations until December 31, 1892, when it disbanded.
There were many meetings, held mostly at the office of The Cataract Con-
struction Company at Niagara Falls, but occasionally at New York in con-
ference with the directors of the company.
The records of the meetings show that they were frequently attended by
the various consulting engineers engaged in special services for the company.
272
ENGINEERING ORGANIZATION, 1890-1918
OFFICIAL CONFERENCES AT NIAGARA
The officers of the company were frequent visitors at Niagara and often at
the conferences of the advisory board of engineers. They were occasionally ac-
companied by technical experts, particularly during the period of the World's
Fair in Chicago in 1893, when the visiting foreign engineers were numerous
and manifested so much interest that it was thought that they came to this
country principally to examine the Niagara construction, and incidentally
to take a "look in" at the Chicago fair.
La Partie Carree
Edward D. Adams Francis Lynde Stetson
President Vice-president
Edward A. Wickes William B. Rankin e
Vice-president The Cataract Construction Company Treasurer
The officers of the construction company generally appeared in Niagara
Falls on Saturday mornings and devoted their time, at the works, to the con-
struction, its progress and problems, and in the office to the examination of
plans and estimates, and to conferences, returning to New York by the
Sunday night train, usually after dining with associates in Buffalo.
LA PARTIE CARREE
They were Edward D. Adams, president, Francis Lynde Stetson, vice-
president, Edward A. Wickes, vice-president, and William B. Rankine,
treasurer, who were known among their associates as La Partie Carree, and in
273
NIAGARA POWER
effect were a sub-committee of the executive committee and prepared the
principal business matters for its consideration, by their personal inspections
of the construction and their conferences with the engineers at Niagara.
In 1897, when the construction works had proceeded sufficiently to be visu-
alized as a complete project and would-be users of the developing system of
power distribution began to comprehend its facilities and to negotiate for
locations and use in manufacturing, Mr. Rankine established his residence
as the chief executive of the company at Niagara Falls. It was there that
he died in 1905, having seen the fruition of his labors and enjoyed the friend-
ship of his associates. The other members of this Partie Carree survived
the thirty-year period of their Niagara venture, and assisted at the concluding
session of the directors of The Niagara Falls Power Company, when they
surrendered their control of a successful enterprise and authorized its union
with its successful and older neighbor, the Hydraulic Power Company of
Niagara Falls.
° ENGINEERING CONSIDERATIONS
The advisory board of engineers, during the two years of its existence, had
under consideration some of the most interesting scientific problems in engi-
neering to solve, practically, in their application to the conditions obtaining at
Niagara Falls, where water in quantity and force, without precedent in
control, was to be harnessed by methods to be selected from several previously
employed in a comparatively unimportant manner and under entirely different
conditions.
The advisory board of engineers brought to their work an unusually broad
basis of scientific attainments and extended personal experience to guide them
in their deliberations.
The Cataract Construction Company had consulted some of the leading
engineers in this country, upon the question, "How can we utilize commer-
cially the waters of the Niagara River?" They all recognized in some degree
that old methods might be improved by new sciences, but so little was known
of the art of their application, especially under such unprecedented con-
ditions as those at Niagara, that, although their reports made mention of
such theories, they pointed out the speculative risks involved in what would
necessarily prove very expensive experiments, and advised dependence at
first only upon that which had been tried and continued for many years of
successful use.
The private reports from scientific circles abroad, of important progress
in the investigation of electrical methods for the utilization of water-powers,
prompted a careful research upon the subject, which resulted in the reference
of the Niagara problem to a group of international scientists, whose decisions
274
ENGINEERING ORGANIZATION, 1890-1918
would be recognized as of the highest authority, and whose opinions and their
supporting details of definite statements and proposals furnished a broad
platform upon which the advisory board of engineers could build a new struc-
ture, that would be adapted to the locality of the Great Falls, and would
really represent the state of the hydraulic and associated arts at the date of
its construction.
PROBLEMS AWAITING SOLUTION
The following brief statement summarizes the principal subjects that the
advisory board of engineers was called upon from time to time to consider,
in 1890 and 1891 :
The Main Tunnel, or Tail-race,
its first section, with a capacity of 120,000 horse-power,
the shortest line from water-inlet to outlet,
its grade, considering the stratification of the rocks and the
river level,
cross-section and shafts,
lining or surface-finish,
portal and ice protection;
The Second, or Relief Tunnel,
its location and possible details of construction,
connection with main tunnel,
shafts and portal ;
The Inlet-canal, or Head-race,
location,
capacity for 200,000 horse-power,
provision for 100,000 electric horse-power and 100,000 pneu-
matic horse-power, to be developed in separate power-
houses on opposite sides of the canal,
ice protection and discharge ;
The Wheel-pit Slot,
to provide for at least 20 water turbines each of not less than
5000 horse-power, to be directly connected by a single shaft
to its corresponding engine of power conversion ;
The Supplemental Cross-tunnel,
a connection for power development at foot of canal and on
land east of canal;
275
NIAGARA POWER
The Manufacturing Districts,
their locations,
mill-sites,
streets and power conduits,
railway sidings,
trolley connections ;
The Residential District,
its location,
improvement by plan of gradual development with dwellings,
streets and sidewalks,
sewage conduits and disposal works,
potable water and distribution under pressure,
drainage system,
electric lighting,
store,
post-office,
hall for meetings,
house for school,
fire protection ;
The Terminal, or Junction, Railway,
its location,
crossings of railways and streets,
connections with other railways,
equipment and operation,
yards for storage and transfers,
sidings at factories,
tariff relations with connecting railroads and local customers ;
The Water Company,
for supply of potable water,
pumping and filtration plant,
fire protection for new community ;
The Central Power Stations,
and office building.
The awarding of the contract for the alternators following the determina-
tion of the vital questions involved in the hydraulic and electric systems
270
ENGINEERING ORGANIZATION, 1890-1918
adopted, and the near approach of completion of much of the construction
work in progress, permitted the disbandment of the board of engineers of
The Cataract Construction Company on January 1, 1894, and the retirement,
on April 1, 1894, of George B. Burbank as its chief engineer, in charge of
George B. Burbank
Resident Consulting Engineer
1891-1893
Chief Engineer
1893-1894
construction. The following resolution to his credit was placed in the records
of the company :
RESOLVED, That this company hereby make record of its appreciation of the faithful
service, ability and integrity which have characterized Mr. Burbank's connection with
its Engineering Department since June, 1891, as Resident Consulting Engineer and as
Chief Engineer.
NIAGARA POWER
DETERMINATION OF HYDRAULIC SYSTEM
The most important subject for determination by the advisory board of
engineers was that of the hydraulic system to be adopted in lieu of that
proposed under the Evershed plan. The greatest influence in this decision,
other than that of financial expenditures required, was the preliminary adop-
tion of the idea of a central station and a single water-inlet and a single
discharge for the entire hydraulic development.
As this question pertained principally to the engineering domain of
Clemens Herschel, the hydraulic engineer, educated in Germany, familiar also
with the language and works of French engineers, and of extended experi-
ence in this country in various forms of applied hydraulics, it was thought
advantageous to him, as well as to the cataract company, if he should be
brought into direct personal relations with the eminent engineers constituting
the International Niagara Commission in London.
Mr. Herschel, therefore, conferred with the commission in London about
the first of October, 1890, where he availed of his opportunity for an exchange
of experiences, particularly with Messrs. Unwin, of London, Turrettini, of
Geneva, and Dr. Sellers, the company's chief engineer, who had been in
Europe as a member of the commission since its organization in June, 1890.
Mr. Herschel returned in the following October to Niagara, where he put
into effect a change in the proposed grade of the tunnel, recommended some
other changes in the Evershed plan, and developed his own plans for the
portal, ice-run, and other details of the tunnel, that were adopted.
Many minor questions, incidental to the foundation of a system of power
distribution from a central station to a large and extended area, were con-
sidered by the advisory board of engineers, before the end of the year 1893,
that was a period of great activity.
INTERNATIONAL NIAGARA COMMISSION
The final series of sessions of the Niagara commission were held in Lon-
don commencing January 29, 1891, and continuing for six days, for the
consideration of the projects submitted in competition. Messrs. Herschel
and Porter, of the advisory board of engineers, attended those sessions by
invitation and heard the explanations given by the competitors of the details
of their projects. There were fourteen separate proposals, several of which
included two or more designs. Four proposals were for developing power,
two for distribution, and eight for both development and distribution. Com-
plete plans, in English measure, and estimates of costs, with elaborate de-
scriptive memoirs in English, were furnished each of the five members of the
278
ENGINEERING ORGANIZATION, 1890-1918
commission for consideration in advance of the meetings at which the com-
petitors were present with their technical experts.
Two of the foreign competitors availed themselves of the general invitation
to visit Niagara for conferences with the company's engineers prior to the
completion of their design and memoirs.
The visiting engineers from Europe and New York were in daily confer-
ence between the sessions of the commission in London.
Messrs. Herschel and Porter returned home in the latter part of February,
and Dr. Sellers in March, 1891, rendering their several reports of the con-
ferences attended, visits made to engineering works, and impressions received.
THE CONSTRUCTION PERIOD
As the construction work progressed, additional engineers were engaged
to advise and to design the machines for development and distribution of
electric power, and to formulate working plans, prepare specifications, secure
responsible and skillful contractors, supervise their work, and generally to
contribute their experience and ability for the guidance of the officers in
formulating the policies of their company.
Although the scientific group selected to advise and direct the operations
of the company was mainly composed of technical experts, specialists in the
various departments of science embraced in the problem undertaken, there
were engineers in the group who were prepared for emergencies, even where
action involved the use of knowledge pertaining to other departments of
science than their own specialty.
This resourcefulness in time of need, this adaptability to the unexpected,
is one of the valuable attributes of the American engineer, particularly when
in the field, as was frequently manifested in the design and execution of the
novel undertaking at Niagara.
279
NIAGARA POWER
A young engineer, assisting in the surveys preceding the construction of
the tunnel, describes an incident in his experience that illustrates the use of
some knowledge of entomology and botany to overcome an obstacle that
seemed insuperable, temporarily at least, when time and accuracy were of
great importance in his surveying program.
The tunnel was projected to pass under the most inhabited portion of the
town of Niagara, on the shortest line to the lower river; alignment towers
were erected at various points, from which the surveyors were able, in the
autumn of 1890, when the foliage had fallen, to sight their lines over the
intervening buildings and trees.
When revising the proposed tunnel line in the following spring, after the
new leaves had appeared on certain of the larger trees, it was found that
A Sketch of the Alignment Tower Erected Near the New York Central Railroad
Station at Niagara Falls, Comprising Two Towers, One within
the Other, but each Supported Independently
the former line of sight was not clear, and trouble and greater chance of
error were anticipated if it became necessary to carry the line forward by
offsets. The engineer explains his problem and its solution as follows:
In determining the line of the tunnel from the portal it was necessary to throw the
line to the Canadian side of the gorge. The first obstacle in the way was the New York
Central Railroad station. This, of course, could not be cut through. An observation
tower was built alongside of the station building, in order to get over, not only that
building, but the town of Niagara and the houses that lay between that point and the
American side of the gorge. From the top of this tower it was a simple thing to throw
the line into Canada after points were established on the Canadian side of the gorge;
the difficulty lay in the fact that such points in Canada, as could be observed from the
280
ENGINEERING ORGANIZATION, 1890-1918
tower, were too far back from the edge of the gorge to throw the line down to the portal
of the tunnel, which was not far above the water level on the American side. The sole
obstacle to the necessary observation of points close to the edge of the Canadian side of
the gorge was a basswood tree on the American side, situated in the street just the other
side of the station building.
The owners of the tree were approached in an effort to obtain permission to remove
a few small top branches, for which they would be fairly compensated. An offer was
even made to purchase the tree, but the owners, possibly taking advantage of our pre-
dicament, held out for an exorbitant price.
Feeling that it would be an unwarranted waste of time to wait until the tree should
shed its leaves in the fall, I racked my brains for an alternative solution. It occurred
to me that some insect pest might be found, which would hasten the effect of the autumn
weather. As I was driving about the country a good deal in those days, on both the
American and the Canadian sides, in an effort to locate a sand or gravel deposit, I was
afforded abundant opportunity for observation of the ravages of insects upon the
various species of trees of the neighborhood. It was, however, only after long search
that I came, one day on the Canadian side, upon a clump of similar trees infested with
caterpillars. As they were of easy access, I cut two or three small branches on which
the nests were built, and brought them back to the office of the company on the American
side.
Then came the question of installing these new tenants in the peace haven. I was
satisfied that it was not a daylight operation, and hesitated about taking any one into
my confidence. Prompt action was necessary, as there were not leaves enough on the
branches that I had brought home to feed the caterpillars for any length of time. The
tree was a hard one to climb, so I tied a stone to the end of a fishing line and threw it
into the tree, and after two or three trials I was satisfied with the crotch of the limb that
the stone went over. By this means I hoisted my caterpillar nests into the tree. The
crotch being a sharp one, they jammed very securely, and I felt safe in breaking the
string. The caterpillars, known as clisiocampa disstria, or "forest tent caterpillar,"
did their work with surprising rapidity, and no further negotiations were necessary with
the owner of the tree. Within ten days we were able to get a glimpse of the edge of the
gorge on the Canadian side and to set a point on the main line without going to the
trouble of offsets, so that our line went through promptly by direct sighting.
In addition to the members of the advisory board of engineers of The Cata-
ract Construction Company, organized in 1890 by Dr. Coleman Sellers, chief
engineer, there were appointed, from time to time and for periods as required
in the progressive development of this company's affairs :
CONSULTING ENGINEERS
William Cawthorne Unwin, London, late member and secretary
International Niagara Commission
Col. Theodore Turrettini, Geneva, late member International
Niagara Commission
Prof. George Forbes, London, Electrical Engineer
281
NIAGARA POWER
Arthur E. Kennelly (Kennelly and Houston), Philadelphia,
Electrical Engineer
Gen. Daniel W. Flagler, U. S. A., Buffalo, New York
Charles C. Egbert, Niagara Falls, New York, Mechanical
Engineer
William A. Brackenridge
Chief Engineer of
The Cataract Construction Company
Horatio A. Foster, New York, Expert Mechanical and Steam
Engineer
Prof. James Furman Kemp, New York, Geologist
Col. Walter Katte, New York, Civil Engineer
As the preparations for construction proceeded, additional engineers were
engaged, and later, from time to time, others joined the staff for the
282
ENGINEERING ORGANIZATION, 1890-1918
installation of the turbines and shafts, for the erection of the generators and
switchboard, and for the operation and maintenance of the hydro-electric
machinery: construction engineers
William A. Brackenridge, Resident Engineer and Chief Engi-
neer of The Cataract Construction Company
George Frederick Simpson, Assistant Engineer, expert in stere-
otomy, in charge of certain details of tunnel design and con-
struction
A. H. Van Cleve, Resident Engineer and later Consulting
Engineer
Mac Donough Craven, Division Engineer
William S. Humbert, Division Engineer
Edward D. Very, Division Engineer
Edward D. Bolton, Division Engineer
Francis N. Biron, Division Engineer
C. F. Lawton, Acting Assistant Engineer
Albert W. Pierson, Construction Engineer
operating engineers
Philip P. Barton, General Manager
Lorin E. Imlay, Superintendent
The foreign designers of the hydraulic machinery sent their representatives
to this country to supervise the construction, erection and operation of their
devices, some of which were made in Switzerland and some in Pennsylvania.
The first three turbines were made by the I. P. Morris Company, of
Philadelphia, under the supervision of Messrs. Rudolphe Baumann and H.
Vogel, mechanical engineers from Geneva, representing Messrs. Faesch and
Piccard, designers of the Niagara turbines of the first power-house, to whom
the highest award was made by the International Niagara Commission for
hydraulic projects.
To prepare for the erection and operation of the turbines, De Courcy May,
general manager of the I. P. Morris Company that constructed them, joined
the engineering staff of The Cataract Construction Company at Niagara, as
its engineer and general superintendent of the machinery of the power-house.
Soon after the installation in 1897 of the last of the first group of four
electrical alternators in Power-house Number One, Lewis B. Stillwell,' chief
1 For portrait, see Chapter XXII, Volume II.
283
NIAGARA POWER
electrical engineer of the Westinghouse Electric and Manufacturing Com-
pany, was appointed electrical director of The Cataract Construction
Company. Mr. Stillwell had taken an important part in the design and
supervision of construction of the Westinghouse apparatus. Philip P. Barton,
Philip P. Barton
The Niagara Falls Power Company
and Its Filial Companies
1898-1919
Vice-president and Manager
1910-1919
who became assistant electrical superintendent of The Niagara Falls Power
Company, had also served in the works of the Westinghouse Company.
The General Electric Company designed and built all the electrical alter-
nators and their auxiliary apparatus for Power-house Number Two.
In the organization of a staff of young electrical engineers to take charge
of the first switchboard, in Power-house Number One, three applicants were
selected who served in three shifts of eight hours each, and remained in their
284
ENGINEERING ORGANIZATION, 1890-1918
position for several years. They were those here named with their present
engineering positions :
J. B. Whitehead, Professor of Electrical Engineering and Dean
of School of Engineering, Johns Hopkins University, Baltimore,
Maryland
\1
Lorin E. Imlay
The Niagara Falls Power Company
AND
Canadian Niagara Power Company
Superintendent op Operation
1905-1919
Raymond S. Masson, Consulting Engineer, Los Angeles, California
Simon Brewster Storer, President and Chief Engineer, Seneca
River Power Company, Syracuse, New York
Harold W. Buck,1 of the engineering staff of the General Electric Com-
pany, became the electrical engineer in charge of Power-house Number Two
1 For portrait, see Chapter XXVIII, Volume II.
285
NIAGARA POWER
and of the initial half of the Canadian Niagara Power Company development
as well as all other portions of the electrical system, and a valued addition
to the electrical engineering forces of the cataract company. In this, as in
the instances previously mentioned, successful design, construction, installa-
Alexander D. Robb
Vice-president
The Niagara Falls Power Company, mcmxviii
First Employed by Dr. Coleman Sellers as Me-
chanical Inspector, 1904; Assistant Superintend-
ent Canadian Niagara Power Company, 1906,
Superintendent, 1918; Superintendent Canadian
Niagara Power Company and Niagara Plant of
The Niagara Falls Power Company, mcmxviii, 1919
tion and operation were acceptable recommendations for the service of an
engineer to care for the product of his skill.
The distant transmission line to Buffalo was also the subject of serious
study, as one of many novel devices, without precedent, requiring an engi-
neering and inventing vision to anticipate and prevent the possibility of
accident or mistake. The construction of this line was placed under the
286
ENGINEERING ORGANIZATION, 1890-1918
charge of Paul M. Lincoln,1 now Professor-Director in charge of the De-
partment of Electric Engineering at Cornell University.
All the appointments mentioned were justified by their results. The practi-
cal experience in design and construction, the careful supervision of operation
Charles C. Egbert
Mechanical Engineer
Cornell University, 1895
Swiss Federal Polytechnicum, 1896
The Niagara Falls Power Company and
Canadian Niagara Power Company
1901-1918
and repair, with the spirit of personal interest in comparative performance,
made the opportunities of these appointments a matter of satisfaction to the
officers of the company. The later recognition of these men by their profes-
sional associates is shown by their records after the three power-houses had
been completed, their hydro-electric prime movers installed, and their capacity
output successfully distributed to local and distant consumers.
1 For portrait, see Chapter XXVIII, Volume II.
287
NIAGARA POWER
The American Institute of Electrical Engineers elected to the honorable
position of president, each in his turn, the three former electrical engineers
of The Niagara Falls Power Company, Lewis Buckley Stillwell ( 1909-1910 ) ,
Paul M. Lincoln ( 1914-1915) , and Harold W. Buck ( 1916-1917) . A. E. Ken-
nelly (1898-1900), past-president of the American Institute of Electrical
Engineers, was also employed by the cataract company as consulting engineer.
The careers of these engineers and contributions by them to this history appear
elsewhere.
The engineering organization of The Niagara Falls Power Company at
the date of its consolidation with its successor company of mcmxviii was
as follows:
Philip P. Barton, Vice-president and General Manager
Charles C. Egbert, Mechanical Engineer
Lorin E. Imlay, Engineer-Superintendent
Alexander D. Robb, Engineer
The engineering department of the new consolidated organization was
that already under the leadership of John L. Harper, as chief engineer.
288
FINANCES
1890-1918
THE CATARACT CONSTRUCTION COMPANY
1890-1900
THE NIAGARA FALLS POWER COMPANY
1900-1918
1924
BUFFALO, NIAGARA AND EASTERN
POWER CORPORATION
1925
Chapter XIV
CASH
Provided as Treasury Assets by
The Cataract Construction Company, 1890-1000 ... $ 7,044,500
The Niagara Falls Power Company, 1900-1918 . . . 13,226,320
Total Cash, 1890-1918 $20,270,820
FINANCES
OF
THE CATARACT CONSTRUCTION COMPANY
AND
THE NIAGARA FALLS POWER COMPANY
CHAPTER XIV
FINANCIAL BASIS OF THE CATARACT CONSTRUCTION COMPANY
IN ITS SYNDICATE SUBSCRIPTION OF JANUARY 17, 1890
AFTER careful consideration, during 1889 and the beginning of 1890, of
• the several reports upon the Niagara project by various expert engi-
neers and numerous conferences with each, and extended investigations as to
the commercial as well as the various financial questions involved in the under-
taking, it was the opinion of those who had expressed an interest in the pro-
posed venture, that :
1. The primary expenditure should be limited to the probable cost,
liberally estimated, of the shortest section of tunnel and its
appurtenances that would produce manufacturing facilities
sufficient to provide interest upon the capital expenditures and
the expense of maintaining the power-plant ;
2. Additional acreage should be acquired, while obtainable at moder-
ate prices, to provide greater areas for factory requirements,
shipping, dwellings, and local transportation;
3. Improvements of water-supply for potable purposes, and exten-
sion of the sewerage and lighting systems, should be provided ;
4. The construction of the first section of the tunnel and the inlet-
canal for the water-supply should be contracted for as soon as
the necessary rights-of-way and property could be secured and
plans prepared.
It was recognized that the method of developing the power and its dis-
tribution, locally as well as at a distance, was an open question, and that
while the tunnel was under construction there would be ample time to in-
vestigate the various systems in use, particularly the latest designs adopted
abroad, before deciding whether compressed air, electricity, or other means
should be utilized in distributing the power.
291
NIAGARA POWER
The power and construction organizations provided had been given general
powers of capitalization that were considered sufficiently comprehensive and
flexible to provide suitable securities for the financing of the undertaking.
FINANCIAL ORGANIZATIONS
The Niagara Falls Power Company, the permanent organization, had
been granted under special and amendatory laws of the State of New York a
liberal charter under which it was authorized to issue its capital stock and
bonds, practically to whatever extent required, for its needs in construction
and finance.
The Cataract Construction Company was the organization designed to
represent all the money subscribers to the enterprise and to be the means of
their profiting by its contract with The Niagara Falls Power Company for
the design and construction of the entire property to be acquired by the latter,
by the issue of its shares and bonds to The Cataract Construction Company in
payment therefor.
The Cataract Construction Company was organized June 13, 1889, with an
authorized capital stock of $25,000 divided into 500 shares of a par value of $50
each. It was authorized to commence business upon a paid-up capital of $5000,
which was subscribed and paid in cash by Edward A. Wickes, fifty shares,
Francis Lynde Stetson, forty shares, and William B. Rankine, ten shares,
all of New York City.
It also entered into an agreement on July 5, 1889, with all the stockholders
of the Niagara River Hydraulic Tunnel, Power and Sewer Company1
whereby they agreed to sell their shares to The Cataract Construction Com-
pany for $200,000, payable, one half in money and one half in bonds, under
various conditions as in said agreement set forth. In this arrangement the
cataract company acquired all the lands and options on lands, rights-of-way
and franchises of the Niagara company, and became its business and financial
agent.
An increase of the capital stock of The Cataract Construction Company
to $25,000, the maximum authorized under its charter, was voted by the
stockholders January 25, 1890, and the officers were authorized to receive
subscriptions in cash for such increase of 400 shares, at their par value of
$50 each.
SYNDICATE SUBSCRIPTION
An agreement under date of January 17, 1890, was made by the cataract
company with subscribers to its shares and to the first mortgage bonds of
1 Name changed Nov. 11, 1889, to The Niagara Falls Power Company.
292
FINANCES
the Niagara company. All subscriptions were made for single blocks, or
multiples, of the aforementioned securities :
The Cataract Construction Company, one share at par value ... $ 50
The Niagara Falls Power Company, $7250 first mortgage five per
cent bonds, at 90 per cent 6,525
Total cash for each "block" of securities $6,575
As there were 400 shares of cataract company thus subscribed at par
of $50, amounting to $ 20,000
there were, in proportion (1 : 400) to this original subscription,
$2,900,000 Niagara bonds at 90 per cent, amounting to 2,610,000
Total cash subscription $2,630,000
The bond subscriptions were payable when and as called for by The
Cataract Construction Company, provided that (a) no call should be for
more than 10 per cent; (b) at least one month should elapse between the first
call and the second call; (c) at least eight months should elapse between the
second call and the last call. Cataract stockholders had the privilege of sub-
scribing for additional bonds at 90 per cent, whenever further sales were to
be made by the cataract company.
As the cataract company became entitled to receive bonds under its con-
struction contract with the Niagara company, they were delivered to the
bankers, George S. Bowdoin, of J. P. Morgan & Company; John Crosby
Brown, of Brown Brothers & Company, and Charles Lanier, of Winslow,
Lanier & Company, as a committee of subscribers who were empowered to
hold, manage and sell the bonds for account of the subscribers.
Scrip for bonds instead of cash might, at the option of the cataract com-
pany be paid for interest accruing during construction upon any and all
payments upon subscriptions.
This plan of finance was so framed as to give every stockholder in the
cataract company his proportionate share of all construction profits, and to
the "money subscribers" such additional advantages as might accrue under the
preferential right to subscribe for bonds at 90 per cent.
The financial basis of syndicate subscription of January 17, 1890, for the
inauguration of the Niagara water-power enterprise, was submitted to a
meeting of subscribers, fully discussed, explained in detail by engineers
present, and approved as the basis of the agreement of the above date for
subscriptions of a total sum of $2,630,000 cash.
293
NIAGARA POWER
It was estimated that this total fund of $2,630,000 cash and $393,000 in
bonds to be used in acquiring land, would secure for the enterprise the fol-
lowing described property and privileges :
1. The franchise and entire capital stock of the Niagara company;
2. The right-of-way for the tunnel, about 1 mile, under municipal,
corporate and individual grants ;
3. The main tunnel shafts, inlet-canal, ten wheel-pits, wheels and
their cables for driving machines at the surface;
4. 250 acres of valuable land, controlling 2 miles of the water-
front, and appurtenant riparian rights, lying above the park
reservation and between Niagara River and the New York
Central Railroad, including 75 acres under water;
5. About 1000 acres of other land suitable for building;
6. The water-works supplying the village of Niagara Falls.
These comprised a complete plant to produce hydraulically 20,000 horse-
power. A product of 20,000 mechanical horse-power delivered, continu-
ously, on the floor of the power-house, to a customer at $10 per horse-
power per annum for twenty-four hours, would yield $200,000, which would
provide five per cent interest per annum on $3,000,000 bonds, and leave
$50,000 for use in paying an installment of sinking-fund on the bonds and
current expenses in operation of the plant.
When the agreement of January 17, 1890, between The Cataract Con-
struction Company and the "money subscribers" was submitted to Darius
O. Mills for his signature, he asked that he might sign for twice the amount
he had requested, remarking that if he had been a younger man, he would
have liked to take the entire amount for his own account.
The following list comprises the names of the stockholders of the cataract
company and of the subscribers to its first construction fund:
MONEY SUBSCRIBERS
DOMESTIC ASSOCIATES
Edward D. Adams
Adams, Blodget & Co.
John Bogart
Geo. S. Bowdoin
Dwight Braman
Brown Bros. & Co.
Wm. L. Bull
Clarence Cary
Eugene Cary
J. F. Chamberlain
Thomas P. Chaney
John W. Aitkin
Chas. W. Bangs
Francis S. Bangs
Chas. F. Clark
C. H. Coster
August Belmont & Co.
George B. Burbank
294
FINANCES
DOME!
Chas. G. Curtiss
Elizabeth S. Delano
Chauncey M. Depew
Henry W. Dodd
Charles Fairehild
John G. Floyd
Chas. B. Gaskill
Chas. W. Gould
P. H. Griffin
C. J. Hamlin
Edmund Hayes
John N. Herriman
Clemens Herschel
Chas. B. Hill
Wm, H. Hill
Charles Holt
Mary A. B. Howe,
Executrix
Wm. S. Humberg
Bray ton Ives
Frederic B. Jennings
Morris K. Jesup
Walter Katte
riC ASSOCIATES COXTIN1
Geo. H. Kent
Kuhn, Loeb & Co.
Adolf Ladenburg
Chas. Lanier
Jos. Larocque
John Howard Latham
F. C. Lawrence, Jr.
Lehman Bros.
A. J. Forbes-Leith
Arthur H. Masten
John G. McCullough
Darius O. Mills
J. Pierpont Morgan
Geo. A. Morrison
Chas. McVeagh
J. L. Norton
Trenor L. Park
H. K. Pomroy
Albert H. Porter
Alexander J. Porter
Geo. M. Porter
Wm. B. Rankine
Spencer W. Richardson
Edward L. Rogers
Winthrop Rutherford
John Satterfield
John N. Scatcherd
J. F. Schenck
W. L. Scott
Isaac N. Seligman
Coleman Sellers
Francis Lynde Stetson
F. K. Sturgis
Chas. A. Sweet
Pascal L. Taylor
Chas. E. Tracy
H. McK. Twombly
Henry C. Valentine
W. K. Vanderbilt
Van Emburg & Atterbury
Horace White
F. W. Whitridge
Edward A. Wickes
Mary F. Wickes
Edward Winslow
Winslow, Lanier & Co.
FOREIGN ASSOCIATES
Alexander Hargreaves Brown, London
Ernest Cassel, London
W. Brodrick Cloete, London
Robert Fleming, Dundee
Louis Ferdinand Floersheim, London
Leon Gotz, Paris
Hottinguer & Company, Paris
C. C. MacRae, London
F. Nettlefold, London
Henry Oppenheim, London
Francis Pavy, London
Railway Share Trust Company, London
Lord Rothschild, London
Louis Schott, London
Robert R. Symon, London
Trustees, Executors & Securities
Corporation, Ltd., London
Theo. Turrettini, Geneva
The total number of "money subscribers" was 103, including those of
London and Paris. About half of the subscribers purchased one "block"
only, representing $6575 cash, for one share of the cataract company and
$7250 par value of bonds of the Niagara company, as already more particu-
larly described.
Additional bonds and stock, all of the Niagara company, were issued to the
stockholders of The Cataract Construction Company upon their subscrip-
tion therefor, at various dates and under various terms, as here described.
295
NIAGARA POWER
Date
Circular
Par Value
Cash
5% Bonds
Stock
Realized
1890, Jan'y 17
No. 1
cp^6,yuu,uuu
$2,610,000
1893, Feb'y 15
No. 19
1,000,000
1,000,000
1,200,000
1896, Dec. 15
No. 36
2,600,000
500,000
2,000,000
1898, Apr. 9
No. 47
418,000
376,200
1899, Sept. 30
No. 49
278,000
31,000
272,100
Total
$7,196,000
$1,531,000
$6,458,300
The total cash paid for the securities of The Niagara Falls Power Com-
pany was equivalent to par ($100) per share, for the stock and about 69
per cent for the five per cent bonds. „ ... , a.Is.^onnn
1 r Brought forward $6,458,300
Under circular No. 16, of June 10, 1892, subscriptions were received at
par for the Preferred Shares of the Development (land) Company and
the Junction Railway Company, aggregating 561,200
The stockholders of The Cataract Construction Company paid, in 1890,
the par value of the 500 shares of capital stock of $50 each .... 25,000
Thus, from 1890 to 1900, both inclusive, their subscriptions for bonds and
shares as shown above amounted to $7,044,500
for which they received (in addition to the Preferred Shares of the
Development and the Junction Railway companies) the following
securities of „ _ , _ .
1st Mortgage Capital Cash
Bonds Stock
The Niagara Falls Power Company .... $7,196,000 $1,500,000 $
During the same period 1890-1900, interest on
bonds, so subscribed for, was paid in bonds
of The Niagara Falls Power Company at par
to the extent of 1,386,000
and there were distributions of construction
profits, paid as dividends upon the shares of
The Cataract Construction Company . . 250,000 1,800,000 264,750
Upon liquidation of The Cataract Construction
Company there was returned to the stock-
holders in cash the $50 par value of their
stock 25,000
Total cash and securities of The Niagara Falls
Power Company issued to stockholders of
The Cataract Construction Company upon
subscriptions, for bond interest, distribution
of profits and reimbursement of capital stock $8,832,000 $3,300,000 $ 289,750
296
FINANCES
THE CATARACT CONSTRUCTION COMPANY
On January 1, 1900, The Cataract Construction Company, after ten years
of activity as the agent of The Niagara Falls Power Company, surrendered
its representation, retired from business and went into liquidation, having
finished its construction contracts and disbursed its profits to its stockholders.1
Thereafter the Niagara company availed of its credit then fully estab-
lished, financed its own operations, and took over the management of its own
property.
The "money subscribers," as they were called, were mostly Americans.
No public issue of shares or bonds was made either in this country or Europe,
although representative foreign capitalists became interested, to a moderate
amount, mainly through the subscriptions of their New York correspondents.
The subscriptions were represented by the promoters of the enterprise as
speculative investments. The financial risks were deliberately made com-
paratively small in amount, $6575 cash for each participant. The venture
was expected to be slow in developing. There were many uncertainties in-
volved in the decisions to be made as to the systems and machinery to be
adopted.
The organization of capitalists and engineers became an association of
adventurers and pioneers. The participants were advised to take only such
small amounts as would maintain and stimulate their interest in the methods
adopted in harnessing Niagara, but could not cause anxiety or serious regrets.
The importance of the experiment was recognized. It was an interesting-
problem; its solution would be important and historical. Its success would
be of national interest and a source of gratification and pride to its venturers.
Each financial participant might at least experience satisfaction as one of
few who did much for many in thus developing the industrial resources and
advancing the prosperity of this country.
FOREIGN INVESTIGATIONS
Not long after the formation of the syndicate of "money subscribers,"
President Adams of The Cataract Construction Company was in London
seeking information regarding the most recently established power systems
in Europe. Desiring an influential introduction and advice as to what engi-
neering groups in England should primarily be consulted, he called, as had
been his custom for many years when visiting "the City," upon Lord
Rothschild, the international banker. President Adams explained the project
for the utilization of Niagara Falls and the desire of the directors to be sure
of their complete knowledge of the state of the arts they were likely to employ,
1 Chapter XII.
297
NIAGARA POWER
before adopting a definite plan, organizing a company and selecting its ex-
ecutives to design, estimate and construct the undertaking.
After suggesting names of experts and outlining their professional ex-
periences and standing, Lord Rothschild gave a key introduction and
remarked substantially as follows:
"I suppose you are not ready with your financial plans?"
"Yes," replied President Adams, "they have been adopted to a preliminary
extent. We find the project very interesting; it has many problems; all
previous efforts to utilize Niagara power in an important way have been
failures, but we believe that science has so advanced that, with its skillful use,
it may soon be possible to harness Niagara upon a commercial basis. We
have resolved to engage in the experiment."
"I presume," the English banker continued, "you will wish to discuss your
financial plans?"
"Not exactly, sir. We have not come for money, but for advice. Our im-
mediate and contiguous requirements have been provided, and we wish to
begin by investing in the counsel of your scientists and engineers."
"Well," said Lord Rothschild, "this is something new, indeed. Rarely in
my experience have foreign capitalists come to London to spend their own
funds for information as to how to invest their own money in their own
country. I should like a participation in your experiment and will gladly
assist you in every possible way."
It is noteworthy that from the original £5000 subscribed as a result of this
interview, a considerable investment resulted from a proportionate participa-
tion in subsequent subscriptions and that the securities were held intact for
a long period.
FINANCIAL DOCUMENTS
Among the important links in the chain of events that bound the adven-
turers together, there follow here :
1. Certificate of Syndicate Subscription issued under the Agree-
ment of Money Subscribers of January 17, 1890;
2. Circular No. 2 issued February 3, 1890, by The Cataract Con-
struction Company to its stockholders, reporting progress;
3. Circular 10a, being an extract from the Directors' Minutes of
December 24, 1890, exercising option to pay interest on money
subscription in bond scrip during construction;
4. Certificate of First Mortgage Bond Interest Scrip.
298
FINANCES
$5,000. No. 000
Cash SUBSCRIPTION CERTIFICATE
New York,
to February 1st, 1897.
$6,500. FIRST MORTGAGE BONDS
$1,250. CAPITAL STOCK
OF
THE NIAGARA FALLS POWER COMPANY
The bearer will be entitled to receive after payment of
FIVE THOUSAND DOLLARS, pursuant to the
terms of subscription under circular No. 36 of December 15th, 1896, of this Company,
$6,500. First Mortgage 5/c Bonds,
bearing interest from January 1st, 1898, and
$1,250. Capital Stock of
THE NIAGARA FALLS POWER COMPANY.
The Capital Stock will be deliverable after payment of $2,500. and the Bonds after
payment of the entire subscription of $5,000. and the surrender hereof at the office of
this Company in the City of New York.
All payments must be evidenced by the endorsement of this Company hereon.
The Cataract Construction Company,
Countersigned by by
(Specimen) (Specimen)
Secretary President
THE CATARACT CONSTRUCTION COMPANY
Circular 2. Mills Building, 23 Broad Street,
Room 24, Fourth Floor,
Dear Sir: ^ew Yokk' February 3, 1890.
You are hereby notified that under clause 1, of the subscription of January 17, 1890,
this Company is prepared to issue to you shares of stock, upon receiving at the
New York office of the Company (as above) your cheque to the order of George H.
Kent, Treasurer, for fifty dollars a share, being in all $
There is herewith enclosed, strictly for your personal use, (1) a copy of the Syndi-
cate Subscription of January 17, 1890, and (2) a copy of the Statement of the Financial
basis of that subscription.
To avoid confusion it is proper to state that these two papers constitute and comprise
the exclusive foundation for subscription, the green pamphlet of 1886 and the "Memo-
randum" printed (though never officially issued) in the summer of 1889 having been
299
NIAGARA POWER
superseded and withdrawn in view of the proceedings at the subscribers' meeting, January
14, 1890. At that meeting Dr. Sellers reiterated his approval (since confirmed by the
Hydraulic Engineer, Clemens Herschel, Esq.), of the agreement of December 30, 1890,
granting a right of way under the Hydraulic Canal defeasible only in case of unremedied
damage to the canal, or failure to deliver the $15,000 in bonds (provided for in the finan-
cial statement).
The promised agreement for right of way under the Central Railroad tracks is still
under consideration for the purpose of embracing a number of collateral stipulations
mutually advantageous.
The time for executing the formal contract with the Niagara Company has, at the
request of this Company, been extended to April 1, 1890, so as to permit careful formu-
lation of plans. At that time it is proposed to put the existing land contracts for the
original 229 acres into the form of deeds with mortgages back. In cases where immediate
possession is necessary, cash will have to be paid in whole or in part. In this way it is
believed that every interest in the plan as originally proposed is adequately secured.
As to the additional lands authorized to be acquired at the meeting of January 14,
1890, the Company is proceeding with rapidity and gratifying success in purchases
within the specified limit. The first payments are being made from a sum ($60,000)
advanced by Mr. Adams, who, after consultation before sailing, advised that all steps
be taken for securing these various interests and for establishing the enterprise without
waiting for further subscriptions. In the opinion of some subscribers further subscrip-
tions should be postponed so as to give present subscribers an opportunity to increase.
A meeting of the subscribers, for the purpose of completing organization, choosing a
Committee of Three, and for any other business, will be held at the New York office of
the Company, Room 2Jf, Fourth Floor, Mills Building, at 3 o'clock P. M., on Thursday,
6th February, 1890. WILLIAM B. RANKINE,
Secretary.
Circular 10 a.
EXTRACT FROM MINUTES OF DECEMBER 24, 1890.
Whereas, In the subscription agreement of January 17, 1890, by the form of certifi-
cate therein set forth as well as by the financial basis dated 23d January, 1890, it was
provided that scrip or bonds might, at the option of Cataract Company, be paid for
interest accruing during construction upon any and all payments upon subscriptions to
such agreement ; and
Whereas, At a meeting of the money subscribers held Februar}7 6, 1890, it was voted
that for all purposes of the agreement of January 17, 1890, assent in behalf of the
money subscribers might be given by the regular action of the Board of Directors of
this Company, which resolution was duly notified to all parties in interest by circulars
3 and 3a ; now therefore be it
Resolved, That the Cataract Company hereby exercises its said option, and hereby
declares and decides to pay interest during construction by the issue of scrip certificates,
substantially in the form of that hereunto annexed, redeemable in bonds as therein
provided.
300
FINANCES
Resolved, That in case any coupons upon any bonds held by the Committee under
Clause 5 of the agreement of January 17, 1890, shall mature before the completion of
the first section of the works of the Niagara Company, the Committee shall be and it is
hereby authorized and directed to detach such coupons, and to deliver or dispose of such
bond without such coupons, which with all other coupons of the same maturity shall be
held by such Committee until the interest thereby represented shall have been duly
adjusted, by the issue and redemption of scrip certificates as herein provided ; and in case
of bonds without coupons the interest before completion shall be similarly paid and
adjusted, and the committee shall suitably inscribe such bonds accordingly.
Resolved, That a copy of these resolutions be forthwith communicated to each money
subscriber.
CERTIFICATE
OF
THE CATARACT CONSTRUCTION COMPANY
FOR $
OF
THE NIAGARA FALLS POWER COMPANY
FIRST MORTGAGE INTEREST SCRIP
THIS IS TO CERTIFY, That
a subscriber to a certain agreement with The Cataract Construction Company, bearing
date January 17, 1890, or the transferee hereof, will be entitled, subject to the terms of
said agreement, to receive from the Committee under Clause 5 of said agreement, at the
time and in the manner therein provided for the delivery of bonds, or proceeds of bonds,
the sum of
dollars,
without interest thereon, in First Mortgage Bonds of The Niagara Falls Power Com-
pany, or the proceeds of such bonds ; provided that no such b.onds or proceeds shall be
deliverable on account hereof, except upon surrender to the Committee of scrip cer-
tificates of this tenor, in aggregate amount equal to the par value of such bond.
This Scrip Certificate is issued and received on account of interest accruing up to
1st, 189 , under and upon the payments heretofore endorsed upon Subscription
Certificate No. and shall, when redeemed without interest, as herein provided,
be in full satisfaction of all claims for such interest to the extent above certified. All
transfers hereof, before taking effect, must be registered by the Company.
In Witness Whereof, The Cataract Construction Company, has caused this
Scrip Certificate to be signed and delivered, by its President (or Vice-President)
and its Treasurer, and to be duly registered, this 1st day of , 189 .
President.
Treasurer.
301
NIAGARA POWER
PROGRESS OF CONSTRUCTION AND ITS FINANCE
The basic features of this enterprise were experimental and practically all
were involved in the installation and operation of three units of 5000 horse-
power each in the sections of the Power-house and Wheel-pit Slot Number
One first constructed. This installation was a demonstration, and its resulting
actual income and that prospective from contracts assured, when made public,
announced to the world that the Niagara problem had been commercially
solved.
BOND BUYERS
Circular No. 36 of The Cataract Construction Company, issued December
15, 1896, stated that "the works of The Niagara Falls Power Company are
so far completed that delivery of power to customers in Buffalo has been
successfully instituted, and that the calls for power under contracts actually
executed (and in excess of the present capacity of the works) will provide
annual rentals of $365,975, and, under contracts in negotiation, $72,250 more,
or a total of $438,225," much more than previously estimated.
The circular further stated that
since work has begun in 1890, no interest in The Cataract Construction Company is
known to have been sold for less than par ; notwithstanding the occurrence of at least
four financial crises in the principal money markets of the country, and other influences
deterring the establishment of many new industries requiring power. Considering these
general and well-known adverse conditions, coincident almost with its life, the wonder
is that this company has so steadily progressed, and, as above indicated, has almost
reached the point of self-support. Under such conditions, and in view of the necessarily
experimental character of the work, it would have been folly at any earlier date to
seek to provide for an installation larger than necessary to demonstrate that this
enterprise can accomplish real work and promise real profits, such as can now be ex-
pected after January 1, 1898.
To complete the power-house and wheel-pit slot for the ten units of a total
50,000 horse-power, involved an estimated additional expenditure of $2,000,-
000, and this program was announced as follows :
The proposed extension involves doubling the present capacity of the transmission
line to Buffalo which is now delivering 1000 electrical horse-power; the extension of the
wheel-pit for its full length, so as to have capacity in all for ten 5000 horse-power
turbines and dynamos ; the installation of seven 5000 horse-power turbines and dynamos,
in addition to the three now in operation; and the extension of the power-house to
cover the new installation.
Such an extension of the wheel-pit is about one-third completed ; the right-of-way
from Niagara Falls to Buffalo is completed, the pole-line already erected has a pole
and cross-arm capacity of 20,000 electrical horse-power, with copper conductors in
place for 5000 electrical horse-power. Upon definite proposals already received, the
302
FINANCES
entire installation above described can be progressive!}' completed before April 1, 1898,
with the proceeds of the subscription of $2,000,000 now invited, and already largely
taken.
This subscription for bonds and stock of The Niagara Falls Power Com-
pany was divided into blocks of $5000 each, for $6500 par value of first
mortgage five per cent bonds and $1250 par value of capital stock. This was
the last subscription for the combined securities offered by The Cataract
Construction Company.
Circular No. 47 of April 9, 1898, offered $418,000, and Circular No. 49, of
September 30, 1899, offered $278,000 of bonds, in both instances at 90 per
cent of their par value and accrued interest.
THE NIAGARA FALLS POWER COMPANY
After the conclusion of the construction of its principal works, undertaken,
financed and completed by The Cataract Construction Company, in 1899,
when it surrendered its agency and ceased its activities, the financial negotia-
tions of The Niagara Falls Power Company commenced with the issue of its
Circular No. 50 of November 16, 1899, in which the progress of the enterprise
may be seen by its statement that
the limit of the present power-house and the present wheel-pit upon the west side of the
canal has been reached, and additional turbines and dynamos can be established only
by the construction of an additional wheel-pit and an additional power-house, for which
a site upon the east side of the inlet-canal, approved by the professional advisers of
the company, has been adopted by the board of directors.
In anticipation of this demand for power, the supply of water by the inlet-
canal, and its discharge by the outlet tunnel had been originally constructed
with a capacity of 100,000 horse-power.
POWER-HOUSE NUMBER TWO
The plan on the next page prepared in 1892 indicates two power-houses of
50,000 horse-power each, one on the east side of the inlet-canal for hydro-
electric, and the other on the west side for hydro-pneumatic development. By
1899, however, the electric system operated from Power-house Number
One had fully proved its reliability and advantages, while the pneumatic
method had nowhere fulfilled its early promises. The Niagara Falls Power
Company announced its unreserved commitment to hydro-electric methods
for the development of the 200,000 effective horse-power that it was author-
ized to utilize from the waters of the Niagara River.
The improving credit of the company prompted the directors to reserve
its mortgage securities as a future resource in event of need, and to create
an issue of $3,000,000 six per cent, ten-year convertible debenture bonds,
303
NIAGARA POWER
without special pledge of property or mortgage lien with the right in the
holder, at his pleasure on any interest day, on or before April 1, 1905, to
convert the same at par into the capital stock of The Niagara Falls Power
Company at par.
Subscriptions were invited for the purchase of $2,100,000 at par and accrued
interest, leaving $900,000 for subsequent issue as required. It was directed
Location of Inlet-canal and Power-houses
that the construction of the second wheel-pit should be that eventually to be
required for eleven turbines and dynamos, of which six units should be
ordered then, leaving five for later installation.
By its circular No. 56 of June 25, 1901, The Niagara Falls Power Company
informed its stockholders that the construction of the wheel-pit of the addi-
tional power-house upon the east side of the canal, authorized in November,
304
FINANCES
1899, had progressed so that the six dynamos would be in operation by March,
1902, in anticipation of which a considerable portion of their power had
already been contracted for upon remunerative terms. Convinced of further
demands for considerable power for increased use by present tenants and by
the new chemical and metallurgical industries, the directors urged immediate
preparation for the development of power by the Canadian Niagara Power
Company, of which The Niagara Falls Power Company owned the entire
capital stock except the qualifying shares of the directors.
CONSTRUCTION AND FINANCE OF POWEK-HOUSE NUMBER THREE
The Canadian company was authorized to create and utilize power within
the Queen Victoria Niagara Falls Park, and to transmit the same without
the park, with authority to construct and operate works necessary and use-
ful in connection with the business of The Niagara Falls Power Company.
The company's circular further stated :
The Canadian company has authority to take its lines or conductors across the
bridges over the Niagara River, and the power developed by it may be used as a reserve
and also as an addition to the power developed upon the American side by the connection
of the power-houses on the two sides of the river, providing each user of power from
either power-house the protection of reserve power from the other power-house.
The accepted and final plans of the Canadian company provided for "the
construction of the main tunnel with capacity of not less than 100,000 horse-
power; an intake-canal with the capacity of 50,000 horse-power; and a
wheel-pit with present capacity for 25,000 horse-power of hydraulic and
electrical machinery. The estimates of the engineers indicate that $2,700,000
will be sufficient to cover the cost of such works, including a power-house,
generating and transforming machinery sufficient to enable the company
to supply 20,000 electrical horse-power for transmission without the Park,
and also including interest during the period of construction, estimate to
take two years."
In order to provide the necessary capital, an additional issue of ten-year
six per cent convertible debenture bonds was authorized by The Niagara
Falls Power Company, to be secured by the same amount of debentures to
be issued by the Canadian Niagara Power Company, under a first mortgage
covering all its property in the Queen Victoria Niagara Falls Park.
Subscriptions to $2,700,000 of such secured debentures at par and accrued
interest were invited from the stockholders.
On February 14, 1903, The Niagara Falls Power Company announced
to its stockholders by its Circular No. 62 that the first six units of 5000
horse-power each, previously authorized, had been installed in wheel-pit and
305
NIAGARA POWER
Power-house Number Two, built for eleven units and contracts had been
authorized and let for the other five units of 5000 horse-power each.
To provide funds for the completion of this second installation in Power-
house Number Two, and other works authorized, subscriptions were invited
for the purchase of $800,000 of the six per cent ten-year convertible deben-
tures, due April 1, 1910, at the price of par and interest.
Soon after the construction of the Canadian plant commenced, there were
such demands for power that the construction program was enlarged, and on
December 10, 1904, Circular No. 68 was issued to the stockholders of The
Niagara Falls Power Company, stating that the $2,700,000 provided under
Circular No. 56 had been expended in the construction of:
a main tunnel, completed, with a capacity of 110,000 horse-power;
an intake-canal, completed, with a capacity of 110,000 horse-power;
a wheel-pit slot, completed, with a present capacity of 50,000 horse-
power ;
an extension, under construction, with capacity of 60,000 horse-
power additional; and
a power-house, completed, with generating units being installed
that would supply 50,000 horse-power.
Fully to provide for the estimated cost to complete the works of enlarged
capacity, the stockholders were invited to subscribe, at 95 per cent and accrued
interest, to an additional issue of six per cent debentures of The Niagara
Falls Power Company, to the extent of $2,000,000, secured by a like amount
of Canadian debentures, to be issued under the first mortgage upon the
property of the Canadian company. These debentures were payable Novem-
ber 1, 1914, and subject to redemption, at the option of the company, after
October 1, 1911, but they were not convertible similar to the previous issue,
into the capital stock of The Niagara Falls Power Company, and were
specially designated as "Series B."
After the lapse of more than two years, Circular No. 69, dated January 12,
1907, was issued by The Niagara Falls Power Company, inviting the stock-
holders to subscribe, at the price of 90 per cent and accrued interest, to
$1,500,000 of its six per cent debentures, payable November 1, 1914, but
redeemable October 1, 1911. This issue was known as "Series C" and was
secured by a like amount of debentures of the Canadian company that were
issued under a lien upon all its power-plant rights in the Queen Victoria
Niagara Falls Park, franchises, power transmission lines, and other property
then owned or thereafter acquired for its corporate purposes, and necessary
306
FINANCES
or useful in the development, transmission, distribution or delivery by it of the
electrical power generated in its plant, subject only to the prior lien of the
mortgage of October 1, 1901, securing the issue of $5,000,000 Canadian
company debentures (Series A and Series B) .
INTER-CONNECTION OF THE THREE POWER-HOUSES
AND TRANSMISSION TO BUFFALO
The Niagara company announced at this time that the construction of
Power-house Number Three, commenced in Canada, December, 1904, had
been completed, that there were in operation five power units of 10,000 horse-
power each, and the head works, wheel-pit slots and tunnel, then completed,
had a capacity for service of an aggregate of eleven similar units.
It was also stated that a 32-duct conduit from the Canadian power-house
was then connected at the international boundary, Niagara Falls, New York,
with a similar conduit extending to a connection with cables installed in the
American plant, for the transmission of 32,000 horse-power; and that two
overhead power transmission circuits had been constructed along a private
right-of-way acquired by the Canadian company extending from its power-
plant at Niagara Falls, Canada, along the Canadian side of Niagara River to
Fort Erie, opposite Buffalo, New York, cables being extended thence to a
terminal station of the Cataract Power and Conduit Company in the city of
Buffalo. About 12,000 horse-power, it was stated, were then being delivered
from this transmission line regularly for use in Buffalo, and it was proposed,
at an early date, to supply 25,000 horse-power from these circuits to Buffalo,
thus allowing the American plant to enlarge its services in its adjacent
territory of Niagara Falls and Tonawanda. The pre-emption by other Cana-
dian power companies of sites available for manufacturers at Niagara Falls,
Canada, had made it necessary for the American and Canadian Niagara
companies to purchase a considerable amount of real estate on the Canadian
side.
REFUNDING AND GENERAL MORTGAGE BONDS
At a meeting of the stockholders of The Niagara Falls Power Company,
June 1, 1909, the execution was authorized of a "Refunding and General
Mortgage" to secure an ultimate issue of $20,000,000 six per cent bonds,
to become payable January 1, 1932. The principal purpose of this issue was
the timely provision to meet the payment at maturity in 1910 and 1911 of
$6,000,000 of the company's debentures, as well as all the other bonded
obligations maturing in no distant periods thereafter.
On February 26, 1910, an offer was made to retire the six per cent deben-
tures of The Niagara Falls Power Company of the several issues, aggregating
307
NIAGARA POWER
a total of $9,076,000, by an even exchange for the new refunding and general
mortgage six per cent bonds, due January 1, 1932. During that year,
$7,542,000 six per cent debentures of The Niagara Falls Power Company
were refunded, as proposed, and in the following year the remainder were
provided for by a sale of the company's capital stock at par, the company
having availed of its option, reserved in the original issue, to redeem the
debentures prior to maturity.
Circular No. 75, of May 11, 1910, offered to the stockholders $686,000 of
the company's six per cent refunding and general mortgage bonds at par
and accrued interest, to pay for additions and improvements to the plants of
The Niagara Falls Power Company and the Canadian Power company.
CAPITAL STOCK SOLD AT PAR TO RETIRE BONDS
An issue of $1,534,000 par value of the capital stock was authorized in
March, 1911, and subscribed for at par in cash by the stockholders of The
Niagara Falls Power Company, by the terms of its Circular No. 77, for the
express purpose of retiring that amount of debentures (Series A, B and C,
Canadian collateral), called for redemption under the terms reserved to the
company, prior to their maturity.
During the year 1911, the entire capital stock, 2500 shares ($250,000 par
value) of the Tonawanda Power Company, was acquired in an even exchange
for the shares of The Niagara Falls Power Company.
SALE OF CONTROL
OF
BUFFALO AND TONAWANDA FILIAL COMPANIES
Under date of June 1, 1915, the ownership of 10,050 shares ($1,005,000 par
value of a total $2,000,000) of the capital stock of the Cataract Power and
Conduit Company, of Buffalo, was sold by The Niagara Falls Power Company '
to the Buffalo General Electric Company at 141 per cent, payable in cash
and its first refunding five per cent bonds, due 1939, at par and interest.
The bonds were sold by the power company at 95 and interest, and the
total net proceeds, $1,501,419, added to the funds of the company, held by
trustees as part security for its bonds and available under the terms of the
mortgages securing the bonds for construction purposes and property ac-
quisitions. These shares were those of the company organized in 1896, to
receive and distribute Niagara power in Buffalo, in which a majority interest
had been retained by The Niagara Falls Power Company.
A policy similar to that established in Buffalo was pursued for the distribu-
tion of Niagara electric power from the Buffalo transmission line, as it
308
FINANCES
passed through North Tonawanda, Tonawanda and Wheatfield, from which
towns licenses had been obtained therefor.
A company was formed under the name of Tonawanda Power Company,
with an authorized capital stock of $250,000. Several contracts for power
were awaiting action, and the necessary machinery for a transforming and
distributing station for current and switching services were promptly in-
stalled. In August, 19I7,1 all of this capital stock was sold at $175 per share
to local interests at Tonawanda, and $437,500 cash was paid to The Niagara
Falls Power Company for its $250,000 par value, constituting all of the
capital stock of the Tonawanda company.
FINANCIAL SUMMARY
As already shown, cash capital was provided through the sale of bonds
and shares of The Niagara Falls Power Company, by The Cataract Con-
struction Company, during the formative and construction period, when it
was responsible for the plans and liabilities of the enterprise. Upon the
completion of the construction undertaken by the cataract company, and its
retirement from its representation in 1900, the financial responsibility came
solely upon the management of The Niagara Falls Power Company until
1918, when its control was acquired by the consolidated company, The Ni-
agara Falls Power Company, mcmxviii.
The following summary of financial negotiations by The Niagara Falls
Power Company indicates its financial policy, the sujDport of its stock-
holders during a period of commercial crises, and the gradual improvement
in its credit by establishing confidence in the method that had been adopted
through the demonstration, in the operation of its works, of its reliability
and profitableness.
1 See Circular No. 84 of The Niagara Falls Power Company for the year 1917, Appendix D, Volume I.
309
FINANCES
STOCK AND BONDS OF THE NIAGARA FALLS POWER COMPANY
SOLD THROUGH OFFERINGS TO ITS SHAREHOLDERS
1899-1911
Circular
The Niagara Falls Power Company
Date
No.
Price
6% Bonds
Stock
Cash
1899, Nov. 16
50
100 & Int.
$2,200,000
$
$2,200,000
Debentures
1901, June 25
56
100 "
3,000,000
3,000,000
Series A
1903, Feb. 14
62
100 "
800,000
800,000
Debentures
1904, Dec. 10
68
95 "
1,980,000
1,881,000
Series B
1907, Jan. 12
69
90 "
1,096,000
986,400
Series C
1910, May 11
75
100 "
686,000
686,000
Ref. Gen. Mtg.
1911, Mar. 27
77
100
1,534,000
1,534,000
Shares
Par Value
$9,762,000
$1,534,000
Total Cash
$11,087,400
Debentures redeemed $9,076,000
1, By Refunding and General Mortgage 6$
Bonds, issued in exchange at par .... $7,540,000
2. By Cash Payments 1,536,000 $9,076,000
311
NIAGARA POWER
The total amount of cash for construction purposes, raised from organiza-
tion in 1889 to consolidation in 1918, amounted to $20,270,820, and was
provided as follows :
The Cataract Construction Company
Offered Its Stockholders for Subscription Cash Proceeds
Capital Stock $ 25,000
Securities Sold
The Niagara Falls Power Company
Bonds 6,458,300
Niagara Junction Railway Company
Preferred Stock 140,000
Niagara Development Company
Preferred Stock 421,200
$ 7,044,500
The Niagara Falls Power Company
Offered Its Stockholders for Subscription
Securities Sold
Bonds and Shares of Power
Company $11,087,400
Shares of Power Company 200,000
Stock of Tonawanda Power
Company 437,500
Stock of Cataract Power and
Conduit Company of
Buffalo 1,501,420 13,226,320
Total Cash Provided $20,270,820
During this period The Cataract Construction Company provided the
necessary funds for its work, and distributed its construction profits as divi-
dends to its stockholders in cash and bonds and shares of The Niagara Falls
Power Company.
The Niagara Falls Power Company commenced the payment of cash
dividends upon its capital stock, as outstanding from time to time, at the
rate of eight per cent per annum by the declaration of a distribution of profits
in April, 1910, at the rate of two per cent quarterly, that was continued
without interruption until the consolidation of the companies in the autumn
of 1918, when an extra dividend of three per cent was paid, the capital re-
arranged and the management changed. There were thirty-six dividends
paid in cash from April, 1910, to October, 1918, a total amount of $4,047,101.
312
FINANCES
CONSOLIDATION OF POWER COMPANIES
The consolidation of The Niagara Falls Power Company with the Cliff
Electrical Distributing Company and the Hydraulic Power Company of
Niagara Falls, carried out by The Niagara Falls Power Company and the
Hydraulic Power Company of Niagara Falls, was contracted by all parties
in interest under date of September 20, 1918, the consolidated company re-
ceiving the title of The Niagara Falls Power Company.
The advent of the Schoellkopf interest in the ownership and management
of the consolidated company, brought to a conclusion the financing of the
enterprise, commenced in 1889 by The Cataract Construction Company and
carried out by The Niagara Falls Power Company from 1900 to the con-
solidation of 1918.
The exchange of shares of The Niagara Falls Power Company for those
of the consolidated company was accompanied by the delivery to the latter
of the cash, current assets and investments of The Niagara Falls Power
Company and its filial organizations, amounting as of September 30, 1918,
after providing for all current liabilities, to $5,583,592, comprising its surplus,
unimpaired reserves and undivided profits, being $3,551,800 cash and cash
assets, $1,774,552 in bonds of the United States Government, and $257,240
in Victory Loan of the Dominion of Canada.
PUBLIC ATTITUDE
In financing the Niagara enterprise it was foreseen that incredulity would
be an obstacle to credit, because the methods to be used would be those of
pioneers, and the history of attempts to develop Niagara power had been
largely a record of failures. Complete financial provision was therefore made
at the beginning of the undertaking so that no public appeal for money would
have to be made, if at all, until after the Niagara company had established
its credit by net profits in the operation of its plant. Its stockholders had
been carefully selected because of their confidence in the organization and
their financial strength to carry their share of the adventure through to its
completion.
NO PUBLIC APPEAL FOR MONEY IN PIONEER STAGE
Bankers in Buffalo naturally traded in such securities as were obtainable
from original subscribers, and in creating their markets gave such information
as they could gather, but this was restricted by the policy of the cataract
company to announce officially only the fait accompli. The magnitude of the
enterprise, the novelty of the methods of development, and the dangers to
life and fortune, engendered grave doubts that appealed to prudence when
313
NIAGARA POWER
opportunities were presented of sharing the financial risks of the original
parties.
Each visitor, of the many tourists at the falls, judged of the enterprise
according to his own experience, which in comparison with what could be
learned of the new project, created distrust of the unseen and doubt of the
unknown.
The following correspondence indicates this attitude of some of the public
during construction.
A dealer in local investment securities, in Buffalo, wrote in March, 1893,
asking for information about the Niagara project, stating that "Not only
people here, but in many parts of the country, are taking great interest in
your project, and I receive many letters regarding it."
An investor in a neighboring city wrote, in answer to an offer of securities
of The Niagara Falls Power Company:
I confess I cannot quite understand the strong statements made by the experts and
printed matter. Is it not true that no such enterprise was ever undertaken before and
there is no precedent for what is being undertaken?
Is it not true that there is uncertainty as to the effect of sending vast bodies of water
down a stand-pipe with a perpendicular fall of 120 feet?
Is it clear that the turbine wheels can stand it and construction stand the continuous
shock?
Is there not danger of breakage, accident, etc., that might seriously interfere with
the project and profit?
I confess although everything seems favorable, the enterprise will appear to be quite
hazardous, at once calling for a very great margin of profit as inducement.
If I am not right you can correct me ; but I have never heard or read before of any
such scheme, or of any such turbine wheels to be used. I should be pleased to know what
certainty there is about the business.
The answer, in part, was, "We expect these wheels, each of 5000 horse-
power, will be creating a revolution at Niagara during the coming summer."
INITIALS ON STOCK CERTIFICATE
The union or consolidation of the interests, representing both property and
management, is indicated on the first certificate1 of the preferred stock issued
by the new company, in the design of its seal, being that of the old company
with the year of consolidation subjacent, as the Niagara falls power com-
pany mcmxviii. Moreover, the decorative border of the engraved certificate
was copied from the MacMonnies seal, in which was represented the maski-
nonge (Esox nobilior) and the Delthyris niagarensis in the design, and in the
center of each alternate fossil shell on the sides of the certificate, and in its
center under the word "Company," may be read the initials of the names that
1 See page 310.
314
FINANCES
represent the founders of the original companies, all of whose construction
is now brought within the ownership of the new and single company and under
the management of the second and third generations of the Schoellkopf
pioneers in the harnessing of the Niagara River.
These designs have been introduced in the new certificates by the direction
of the officers of the consolidated companies, and are reproduced here as an
acknowledgment on behalf of the surviving associates of the courtesy thus
shown to their predecessors by those who now direct the affairs of this im-
portant and growing enterprise.
• d& m ^ m^^^ mts^s^
J. F. S.
F. L. S.
E. D. A.
W. B. R.
E. A. W.
T. E.
W. C. E.
C. B. G.
A. P.
H. H. D.
W. D. O.
G. B. M.
A. S.
'Jacob F. Schoellkopf, President.
Francis Lynde Stetson, Director of The Niagara Falls Power Company.
Edward D. Adams, Director of The Niagara Falls Power Company.
Wm. B. Rankine, Director of The Niagara Falls Power Company.
Edward A. Wickes, Director of The Niagara Falls Power Company.
"Thomas Evershed, Engineer.
2W. Caryl Ely, Counsel.
"Charles B. Gaskill, President.
'Augustus Porter.
'Horace H. Day.
W. D. Olmsted.
5 George B. Mathews.
'Arthur Schoellkopf, Vice-president and General Manager.
1 The Niagara Falls Hydraulic Power and Manufacturing' Company, 1877.
2 Engineer, Niagara River Hydraulic Tunnel, Power and Sewer Company, 1886.
3 Porter, Barton & Company, 1805, portage lessees.
4 Acquired the hydraulic canal and spent a large fortune upon it, but it was eventually sold under fore-
closure and he is said to have lost his entire fortune.
5 Close associate of Jacob F. Schoellkopf in the hydraulic canal enterprise, and was the first president
of the reorganized hydraulic power company. He retired from active interest in the power company
several years ago, and now, 1926, lives in Buffalo.
315
The history of the Niagara Falls power-plant is a
demonstration of the ability of applied electrical engi-
neering science to attain in commercial practise re-
sults predicated in large degree upon theory. In a
most striking manner, it exhibits the fact that for
nearly a decade electrical engineering has been estab-
lished upon a basis as certain and permanent as other
branches of engineering ; that eight years ago — a long
time in our profession — it was possible to so plan an
electrical installation involving ultimately the trans-
mission and distribution of several hundred thousands
of horse-power that at the present time we can effect
improvement only with respect to relatively unim-
portant details, the aggregate results of which, if
adopted, would be hardly noticeable as affecting the
cost of power.
From Paper Presented by Lewis B. Stillweix
to the American Institute of Electrical
Engineers, August 23, 1901
THE LANDED ESTATE OF
THE NIAGARA FALLS POWER COMPANY
AND ITS FILIAL COMPANIES
NIAGARA DEVELOPMENT COMPANY
NIAGARA JUNCTION RAILWAY COMPANY
Chapter XV
Property Holdings op The Niagara Falls Power Company and Its Filial Companies before the Consolidation of 1918
Property Holdings
of the Niagara Companies
1918
THE LANDED ESTATE OF
THE NIAGARA FALLS POWER COMPANY
AND ITS FILIAL COMPANIES
. NIAGARA DEVELOPMENT COMPANY
NIAGARA JUNCTION RAILWAY COMPANY
CHAPTER XV
LAND REQUIREMENTS AND POWER TRANSMISSION
THE question of how much land should be acquired to provide for the use
of power at Niagara was seriously considered in the early period of the
study of the general problem of its development and utilization.
It was evident that as there was comparatively little land readily available
near the angle of the land on the banks of the river where it would be most
desired on account of economy of construction, the price would advance
rapidly upon the announcement or even upon the rumor that capital had been
obtained for the enterprise and the "Niagara Problem" would be solved.
Although with charter1 power to take an unlimited quantity of river water,
it was recognized that the use of power might be restricted because of such
high prices for sufficient land to provide the proposed mill-sites and inlet-
canals, that the initial project could not be readily financed.
Furthermore, the purchase of cheaper land upon the banks of the river
above the falls would necessitate larger expenditures in inlet-canal and dis-
charge tunnel construction in carrying out the Evershed plan of locating a
water-wheel at each mill.
Although ample lands, unoccupied and much lower in price, were readily
available for use and could be favorably acquired in the level farming acreage
north and east of the river within several miles of the village of Niagara Falls,
such location would involve miles of rock excavations for water-inlet and
outlet in the wheel-pit system then customary in factory construction, and
the costs thereof would be impracticable if not impossible to finance.
As the Evershed hydraulic system comprising discharge tunnels, and many
inlet-canals and wheel-pits in such a location must necessarily be entirely built
in its major parts, before any power could be commercially developed, this
location was not to be considered unless an economical system of power trans-
mission by wire, cable or pipe could be used.
As such innovations upon long established practise could not be clearly
foreseen, although then considered by some scientists as theoretically possible,
it was determined to adopt a plan by which the least amount of capital would
1 Subsequently limited to 200,000 horse-power.
323
NIAGARA POWER
be required to construct a complete hydraulic system, from the water above
the falls to the water below the falls, and while this work, requiring much
time, was in progress, to investigate at home and abroad the subject of de-
velopment and distribution, the directors, being convinced that the power
possibilities made available by such system could be made productive by one
of several methods of distribution then in use or in anticipation. Hence the
question whether power could be transmitted and distributed by compressed
air or electricity or otherwise was the fundamental question. It involved not
only the plans for the hydraulic development and the machinery to be pur-
chased but it was the determining factor in the amount and location of the land
for which provision should be made before the project was even made public.
HORSE-POWER PER ACRE AT LAWRENCE, HOLYOKE AND ELSEWHERE
The hydraulic engineer of the company advised the purchase of additional
land and gave his experience with New England and other manufacturers,
stating that water-power promoters seldom acquired, at the inception of their
enterprises, sufficient land when cheaply available, and generally paid dearly
for their lack of foresight when their undertakings developed needs of greater
area than could then be readily acquired or paid for.
While the questions involved in the development of 100,000 horse-power
were being considered, an examination was made of the water-powers in New
England to learn about what area of land would probably be required for
manufactories and dwellings, according to the experience at such localities,
for the utilization of the quantity of power it was proposed to develop at
Niagara. Consideration was also given to the dwellings required for the
operatives likely to be brought to Niagara to be employed in the use of this
power.
The following examples of special conditions were selected for guidance
in this problem:
The Essex Company, at Lawrence, Massachusetts, commenced its opera-
tions with 2000 acres of land for canals, mill-sites, house lots and streets, and
about 10,000 horse-power during the whole 24-hour day. This would be the
equivalent per 1000 horse-power of about 200 acres, of which at least 130
acres would be required for building purposes.
The Hadley Falls Company, at Holyoke, Massachusetts, started with the
equivalent of 128 acres in gross per 1000 horse-power used for 24 hours daily.
Of the land about 85 acres were available for building purposes. Mill-sites
required, it was stated, from 2% to 10 acres per 1000 horse-power used upon
the premises, varying, of course, with the class of work undertaken.
324
LANDED ESTATE OF THE NIAGARA FALLS POWER COMPANY
The average requirement at Essex and Hadley Falls is approximately 165
acres for 1000 horse-power. On this basis the land necessary for 120,000 horse-
power is about 20,000 acres or 30 square miles. It may be observed that the
ultimate requirements at Niagara Falls were far less than this, due to the
change from the old method of driving the mill machinery directly, by water-
wheels, to the new electrical method by which power is transmitted to distant
places. Many of the electro-chemical processes utilizing electric power require
much less space in proportion to the power used than is necessary for driving
machinery.
By the census of 1880, it appeared that there were 2,732,595 operatives in
manufacturing establishments in this country, using prime movers of steam
and water to the total amount of 3,410,837 horse-power, being 1.24 horse-
power per employee, equivalent to nearly 100,000 employees for the use of
120,000 horse-power.
The census also showed that in eight representative power-using industries,
there was an average of 3.92 horse-power used for each worker employed,
ranging from 13.20 horse-power per worker in flour and grist-mills, to 0.87
horse-power per worker upon worsted goods.
If 120,000 horse-power were to be used, it would require, on the basis of
3.92 horse-power per worker employed, 25,000 workers. On the basis of 13.20
horse-power per worker, 7500 employees would be necessary.
The power employed in 1889 at St. Anthony's Falls, Minnesota, a water-
power development in several industries suitable for Niagara, was as follows:
Horse-power
per Hand Employed
Flouring and Grist-Mill Products 13.20
Lumber Mills 5.56
Paper 5.07
Allowing 12 horse-power per employee, it appeared that provision should be made
for living conditions for 10,000 employees at Niagara, according to the established
usage of a mill over its wheel-pit. Such an increase of population would require
provision on a similar scale for dwellings, potable water, sewerage, light, fuel and
transportation.
Dwellings and homes for men working at the falls were scarce and difficult
to procure, and the demand for houses for mechanics and others who desired
to locate there was increasing daily.
Niagara Falls at that period, 1890, had a population of about 10,000.
Similar estimates from other industrial centers of production, per worker
and per horse-power, showed clearly that provision should be made for railway
325
NIAGARA POWER
yards, sidings and connections with the two principal American trunk lines
entering the Niagara manufacturing district.
From a forecast of the situation at Niagara Falls, as these essential needs
developed from the construction of the first section of the proposed hydraulic
system for 20,000 horse-power available for distribution, it was evident that
real estate and rents would have a rapid and important advance. The com-
pany's expenditures would enhance the market value as well as the taxable
value of real estate, including its own holdings. Therefore the company should
increase its land ownership without delay, and such purchases should be made
only as would jjrovide for conveniently located dwellings for some of its
officers and employees, and for the construction of a standard-gauge junction
and terminal railroad, in addition to what land was necessary for the power-
plant proposed.
Because of the uncertainty as to the system of power transmission that
would be adopted, ranging from a hydraulic turbine and shaft in a wheel-pit,
to belts, cables, and water, air and electricity under pressure, great modera-
tion was exercised in providing for the anticipated requirements of industries
to be established.
It was evident that should electric transmission of power become practi-
cable, then much less land would be required than otherwise, because the
power could be delivered to customers wherever located for use upon their
own property.
PURCHASE OF LAND AT NIAGARA
The company purchased altogether 1580 acres of nearly level land, ex-
tending from its canal site above the falls, about two miles up the river
along its bank, and stretching at right angles across the tracks and rights-of-
way of the New York Central and Hudson River Railroad, New York,
Lake Erie and Western Railroad, and Buffalo, Thousand Islands and Port-
land Railroad (projected) about SYz miles to Fletcher's Corners on the
Lockport Branch of the New York Central Railroad. A new residential
village was contemplated in the angle of the land location, and a Junction
Railway was proposed on the company's property between the trunk line
railways, as shown on map on page 331.
If the Evershed plan of developments should be adopted, the company
had acquired the river front and acreage required for that enterprise as de-
scribed by its author. Should any other forms of power transmission be
adopted, the company's real estate was most advantageously located for such
purposes, and whatever land it owned in excess of that required for the power-
plant would be in demand at advanced prices for purchase or lease by
power customers when constructing their factories.
320
LANDED ESTATE OF THE NIAGARA FALLS POWER COMPANY
In carrying out the above-mentioned improvements for residence and
freight transportation, two companies were formed and financed, the land
company for the development of the residential tract under the title of
Niagara Development Company, and the railroad transportation and termi-
nal freight facilities under the title of Niagara Junction Railway Company.
Both companies were organized in June, 1892, under the laws of the State
of New York, with identical officers and directors, similar to those of The
Cataract Construction Company. The financial plans were similar for both
companies, with certain exceptions in amounts required because of different
purposes and costs.
The capital stocks were authorized as follows:
Share Capital Authorized
Par Value $100 Each
Development Company
Issued Jan. 1, 1899
Junction Railway Company
Issued Jan. 1, 1893
Common Stock
to be issued in the pur-
chase of land
$750,000
$160,000
Preferred Stock
eight per cent cumula-
tive and convertible, to
be sold for cash
500,000
140,000
Land purchased from The
Niagara Falls Power
Company at the acre
price of
payable in common stock
issue as above
368 acres
$ 2,138
166 acres
$ 2,500
The Niagara Falls Power Company by these transactions became the
owner of all the common stocks issued, which exceeded the preferred stock
and thereby acquired and held the control of both companies.
The preferred stocks were offered June 10, 1892, under Circular No. 16 1
of The Cataract Construction Company, to the syndicate subscribers under
the agreement of January 17, 1890, at the rate of $2000 or two shares of
preferred stocks at par, for each share of The Cataract Construction Com-
pany owned by such subscribers. The privileges of subscription were availed
1 Further particulars of these issues of Development and Junction Railway companies will be found in
Circulars Nos. 16 and 65, Appendix D, Volume I.
327
NIAGARA POWER
of and $600,000 cash was provided : $480,000 for the construction of dwellings
and the maintenance of the property acquired by the Niagara Development
Company, and $120,000 for the acquisition of right-of-way for a small part
of the railway line not derived from the power company, and for the con-
struction, equipment and operation of a single-track standard-gauge line
of the Niagara Junction Railway Company. The subscribers to the preferred
stocks were nearly identical and similar to the list of "money subscribers" of
January 17, 1890, who became the stockholders of The Cataract Construction
Company. No commissions or allowances of any kind were made or paid
to any one on account of these subscriptions.
In June, 1903, the preferred stocks of both companies were purchased at
par and interest by The Niagara Falls Power Company and paid for in
shares of that company at par.
By reference to the map on pages 321-322 it will be seen that the landed
estate of the associated companies is located mainly within the municipal
limits of the present city of Niagara Falls. About one-third is located on the
river front, with projected wharfs and dock facilities, of nearly 2 miles
along the navigable channel, a portion of which was deepened by the United
States authorities so as to accommodate shipping from western cities upon the
Great Lakes.
As the city is bounded on two sides of its location by the impassable Niagara
River, its future growth must be towards the open countryside, across which,
within the municipal limits, a portion of the company's lands extends for about
3I/2 miles at a right angle from the river. The main lines of the New York
Central and the Erie railways pass for 2 miles through and by the side of the
property, while the Lockport Branch of the New York Central forms the
northern boundary of the estate. The New York Central station, Echota,
built for the power company, is located upon this property.
For the convenience of employees the residential district was located in
the central portion of the estate, and the water facilities desired by the manu-
facturers for shipping were provided by the company's docks, constructed
at the upper end of the river front, near this central locality.
NIAGARA DEVELOPMENT COMPANY
The Niagara Development Company was organized under the business
corporation law of the State of New York for the purpose of purchasing
and leasing real estate and buildings and selling, leasing and improving the
same. It owned in fee the residential village, christened by the Cherokee
word "Echota," meaning the "Town of Refuge," and other lands in the city
328
LANDED ESTATE OF THE NIAGARA FALLS POWER COMPANY
of Niagara Falls, comprising 368 acres that were set apart by the power
company for improvement for domestic and manufacturing purposes.
The survey of the estate was made by John Bogart, assisted by Albert H.
Porter, both of the board of engineers.
The location of Echota is shown on the map at the beginning of this chapter
and the development of streets and lots by the view below.
xThe houses were designed by Stanford White, architect of New York.
The company constructed sixty-seven dwellings for the accommodation of
one hundred and twelve families. A building was erected with provisions for
bachelor apartments, an assembly hall, and a general store on the lower floor.
The streets were paved with broken stone, the sidewalks were of concrete,
and a system of drainage was installed. Potable water, sewerage and
electric lights were available in each building. A plant for sewage disposal
was also constructed, and a well-equipped fire department was provided in a
separate house. There were 58 acres of lawn prepared, and many evergreen
and Norway maple trees planted.
Street in Echota, 1894
329
NIAGARA POWER
Echota Hall was used regularly for religious services, and by a mission
Sunday school and a primary day school.
To assure larger school accommodations, an ample lot on the Echota
property was donated to the board of education, upon which a modern two-
story building of eight rooms was erected by the city of Niagara Falls.
The buildings were finished in natural color of shingles, with white painted
trim. Under the influence of the Pan-American Exposition at Buffalo in
1901, when the period arrived for repainting the houses at Echota, a scheme1
of color for the entire village was adopted and successfully carried out, at-
tracting much attention from the visitors and passing railway passengers.
In the words of the New England manufacturer for whom Mr. White
had previously designed and built a "workmen's settlement," the owners of
Echota also concluded that "the tasty pays."
All of the structures erected by the Niagara Development Company, upon
its residential property named "Echota," have been sold. The other real
estate, formerly owned by the development company, is now included in
the estate of The Niagara Falls Power Company by a merger with it of the
property and organization of the Niagara Development Company. Edmund
S. Wheeler was the first manager of the company.
NIAGARA JUNCTION RAILWAY COMPANY
The Niagara Junction Railway extends from one end of the power com-
pany's property to the other, a distance of 5.34 miles by main track, and
connects with the Erie Railway and at several points with the main line
of the New York Central and its Lockport branch.
In addition to a right-of-way, 66 feet in width, for a double-track main
line, with connections and sidings, the Niagara Junction Railway owns in fee
166 acres that were acquired for yard and other terminal facilities.
The line as built is of standard gauge, single track, of 80-pound rail, and
with the exception of about 1000 feet is entirely within the estate of the power
company.
By its main line, 5.34 miles, and sidings, 4.08 miles, June 1, 1896, to the
docks of the company on the river above the falls, the Niagara Junction Rail-
way afforded the desired facilities of transportation for an industrial com-
munity. Its right-of-way was the most convenient route for the conduit and
pole line service of power, light and heat, from the power-houses to all
portions of the landed estate, as well as beyond its boundaries for the lines of
power transmission to Tonawanda, Buffalo and other localities.
1 See Architects and Builders' Magazine, April, 1902.
330
LANDED ESTATE OF THE NIAGARA FALLS POWER COMPANY
In anticipation of the completion of that portion of the tracks of the
Niagara Junction Railway intended to furnish switching services to the new
industries preparing for operation near the inlet-canal of the power company,
and with a view of using electrical motor and line equipment if such an instal-
lation could be had, inquiries were made of manufacturers of electrical
machinery for railway and power systems in this country for estimates in-
cluding an engine or motor capable of hauling 150 tons at a speed of 10 miles
an hour on grades not to exceed 15 feet in a mile. One of the leading manu-
facturers replied that "such an engine does not now exist, as a standard article
manufactured by this or any of the other electric companies."
!§ 1!E_R _R^_RJG HT OF WAY
Map Showing Maix Track axd Sidixgs in 1896 of the Niagara Junction Railway
Two standard coal burning switching engines were purchased, the second
following soon after the first, with dump and flat cars for use in filling trestles
on the road with the refuse products of the factories and materials excavated
in the building of the power plants.
In July, 1892, the Niagara Junction Railway Company announced its
preparation to receive all freight consigned to the Niagara Falls Paper
Company and to A. C. Douglass, contractor.
The original construction of the railway was under the direction of George
B. Burbank, as chief engineer, and its operation was placed in charge of
Edmund S. Wheeler, as general manager.
The use of steam locomotives continued until 1913 when the increase of
traffic necessitated additional equipment and brought up again for considera-
tion the relative advantages of steam and electricity.
331
NIAGARA POWER
Upon the unanimous report of the engineering staff a contract was made
in February, 1913, with the Westinghouse Electric and Manufacturing Com-
pany for the replacement of the steam system by an electrical power installa-
tion of direct current at 600 volts, with locomotives, stations and a complete
wire system for the switching purposes of the company. Shortly thereafter
the steam locomotives were superseded by the electrical motor system which
has since been continued in the operating of the greatly increased traffic of
the railway.
The further evolution of the plans for the power stations and transmission
system will be found in subsequent chapters in Volume Two relating to the
hydraulic and the electric systems, their construction and operation.
332
ASSOCIATED COMPANIES
FOR THE
GENERATION, TRANSMISSION,
AND DISTRIBUTION OF
NIAGARA POWER
1890-1926
Chapter XVI
Charles R. Huntley
18.53-1926
Chairman
Buffalo, Niagara and Eastern Power Corporation
President
Buffalo General Electric Company
Pioneer and Leader
In the Electric Light and Power Industry
In Buffalo and Western New York
Enthusiastic, Courageous, and Persistent
A monument to his genius and foresight, to his planning and
supervision, which marked a notable advance in economy
and efficiency, is the great steam-plant now known as the
Charles R. Huntley Station
ASSOCIATED COMPANIES
FOR THE
GENERATION, TRANSMISSION,
AND DISTRIBUTION OF
NIAGARA POWER
The pozcer of Niagara is the keystone to the arch of Buffalo's prosperity.
Electric power is the bulwark of Buffalo's industry. — Charles R. Huntley.
CHAPTER XVI
BUFFALO AWAITS NIAGARA POWER
BUFFALO in 1895, when electric service was begun by The Niagara
Falls Power Company, had an estimated population of 253,000, and a
total of real and personal taxables of about $130,000,000. The municipality
included 39.6 square miles, with nearly 200 miles of streets.
Although Buffalo, as a rapidly growing community of manufacturers and
business men, had done but little financially to assist in the utilization of the
power of the Great Falls, shortly after the Gaskill-Niagara enterprise was
organized, 1886, a number of the enterprising citizens of Buffalo provided a
cash prize of $100,000 for a practical method of using Niagara power in
Buffalo, the details of which form a part of Chapter V, this volume.
This proposal expressed a public interest in the value of Niagara power
in Buffalo. While its failure to produce a method caused serious doubt of its
practicability, it created a popular sentiment in favor of such use and many
looked forward to its eventual achievement through a system of transmission
by compressed air or water or possibly by electricity, although all these sys-
tems were then considered for long distance of doubtful efficiency and impos-
sible commercially, because of the expense involved in distribution and appli-
cation as well as in the cost of the original transmission from Niagara.
While the Niagara company had provided a large area suitable for the
construction of manufactories with the intention of providing light and power
therefor, the use of which must necessarily await the construction of such
industrial plants, financial conditions then prevailing did not promote the
construction of new factories nor the organization of new manufacturing
enterprises. It was therefore considered important, for the realization of
income, to provide the interest upon the capital investment made in the central
power station system, to develop a plan by which Niagara power might be
taken to Buffalo and distributed there for use by the many manufacturers
who were favorably disposed to its adoption.
335
NIAGARA POWER
FUNDAMENTAL FACTORS ESSENTIAL TO SUCCESS
In the further survey of the problem of such transmission that was taken
up actively after the first units of turbine and alternator had been successfully
tested in April, 1895, there were several fundamental principles considered
as essential to the financial success of such an effort, such as
(1) franchises without embarrassing conditions. The distance for
transmission was about 22 miles, requiring several municipal franchises that,
because of inexperience with the risks involved in high tension current lines,
were likely to impose conditions that would prove difficult and expensive to
comply with and possibly somewhat embarrassing technically to carry out.
(2) continuity of service assured. As a new form of power, it was evi-
dent that demonstration must be given of continuity of supply. In a district
so well settled as that of Buffalo and the intervening municipalities, a failure
of service, any time interrupting both light and power, would prove dis-
appointing and expensive to the users, possibly lead to claims for damages
and cause injury to the credit of the enterprise at its start. It was therefore
resolved that there should be two lines of transmission and two sources of
supply, that the supply of electricity from the American power-house should
be supplemented by a similar supply from the Canadian side of the river, and
that the lines1 of transmission should extend from these respective power-
houses on each side of the river, and be inter-connected by cables on the
Suspension Bridge at the falls, and by an aerial line across the river between
Fort Erie on the Canadian side, and the city of Buffalo on the American side.
(3) block sales to local distributing systems. The management recog-
nized from the very beginning that it was dealing with unprecedented quan-
tities. Its large units of power were adopted with this idea, and the program
for the marketing of the electricity produced was preferentially for the sale
of large blocks of power, the product of one or more single turbo-electric units,
and its distribution to small users through the arteries of local organizations.
(4) DEMONSTRATIONS OF UTILITY, ECONOMY AND SAFETY. In Order to induce
the abandonment of plants operated by the power of steam, it was necessary
to demonstrate the advantages of electrical power, including its economy, its
cleanliness and its dependability. While this might take some time for educa-
tion, the period of preparation of the design of the line, the specifications for
its motors and transformers, and the securing of all the requisite franchises
from the state and the different municipalities, as well as the construction of
the system, would give an opportunity for propaganda in favor of the use of
1 For freedom of custom duties, see Appendix K, Volume II.
336
TRANSMISSION COMPANIES
the power, for which provision was made by securing the services of a recog-
nized power expert, Horatio A. Foster, whose office was established in the
city of Buffalo for this purpose.
RIGHT-OF-WAY AND FRANCHISES
The applications for authority to occupy a right-of-way for power con-
ductors were made in the name of The Niagara Falls Power Company or its
assigns, and only for electric conductors for light, heat or power. The possible
use of compressed air or water had been dismissed from further serious consid-
eration by the practical demonstrations of advantages in the use of high tension
alternating electric currents for long distance transmission of power and light.
The Superintendent of Public Works of the State of New York on August
30, 1895, granted the Niagara company permission to construct and maintain
electric conductors for light, heat or power, along, upon and across the public
lands and waters, property of the state, in the manner and at the places on the
"State Ditch" and on Tonawanda and Ellicott creeks in Erie County, in ac-
cordance with a map filed in his office. The conditions of this permit were
not considered unreasonable regulations.
Supplemental permits were issued by the Superintendent of Public Works
upon application by The Niagara Falls Power Company, by which it was
authorized to place its electric conductors upon Erie Canal lands in the coun-
ties of Erie and Niagara, in conduits or subways under the surface of the
towing path or the berm-bank of the canal, also under the bed of the canal
whenever necessary to cross. This was in addition to the original permit for
transmission lines on poles.
The state reserved the right to place in such conduits or subways telephone
lines for the purpose of communication between the several canal section
superintendents and their employees.
The petition of The Niagara Falls Power Company to the Common Coun-
cil of the city of Buffalo for a franchise authorizing the distribution of elec-
tricity within the said city was presented on October 15, 1894. This action
formally opened the public discussion of the advantages of electrical power.
Communications from citizens appeared in the daily papers, some corre-
spondents finding the prospect of Niagara power in Buffalo an assurance of
increase of property values and the growth of the city as an influential business
center, while others expressed apprehension as to the use of the alternating
current, the dangers of high voltages, and the lack of experience in its use as
a means of power where many employees were engaged. Some parties thought
the company should pay for the privilege of introducing its power, and a
royalty or tax to the city on the revenue obtained therefrom. Public hearings
337
NIAGARA POWER
were held, one particularly for the purpose of introducing the representatives
of the manufacturers of electrical machinery, who were requested to state on
behalf of their companies what devices they had perfected for commercial use
in the transforming of high voltage and the means of its application to ma-
chinery already engaged in the industrial arts.
There were numerous hearings before the Common Council of the city, re-
ports of various committees appointed to examine into the subject, and dis-
cussions by experts, some advocating the use only of continuous current and
others that of the alternating current, while the question of measurement of
the current used and the terms to be charged therefor were subjects of fre-
quent comment by the press and formed a part of the daily converse of the
citizens.
In compliance with a suggestion made at a meeting of the Common Council
Committee, February 7, 189.5, that the city purchase the power from the com-
pany at Niagara and request a proposal that would give municipal ownership
and control of 10,000 or more horse-power, The Niagara Falls Power Com-
pany made the following offers to the city of Buffalo:
The company is now ready to execute a contract in either one of three forms for the
sale to the city of Buffalo of 10,000 horse-power, deliverable on the lands of the company
at Niagara, upon the following terms and at the following prices :
10,000 horse-power undeveloped on lands of the company at Niagara, at $10 per
horse-power per annum, twenty-four-hour power; the city of Buffalo to make
its own wheel-pits and side tunnels and to put in its own wheels. The necessary
water, the inlets and the necessary discharge space in the completed tunnel of
the company are now ready to produce this power.
This form of contract is of public record at Lockport with The Niagara
Falls Paper Company, by whom this form of power has been in satisfactory
use for over one year, showing that interruptions from ice or other causes are
not to be feared ; or
10,000 horse-power developed on the shaft of turbines furnished by the company on
the company's lands at Niagara, at $13 per horse-power per annum, twenty-
four-hour power; so to be delivered within six months from the execution of
the contract ; or
10,000 horse-power electrical, alternating current, at a voltage of 2000 as it comes
from the company's generators at the power-house; twenty-four-hour power,
at $18 per horse-power per annum, to be delivered within eight months from
the execution of the contract.
In the event of the city making a contract for power, in either of the above forms, the
company will place at the disposal of the city all the data which it has gathered in a five-
years' study of the problems of transmission, and will arrange for a satisfactory use by
the city of the rights-of-way between Niagara Falls and Buffalo which the company has
acquired. These rights-of-way are three in number and are practically complete.
338
TRANSMISSION COMPANIES
The company cannot name a price for electrical power transmitted to the Buffalo city
line, as in the question of transmission are involved the uncertainties of the losses and
cost of operation and maintenance. . . .
If the citv does not desire to purchase power at Niagara as above suggested, then,
within the limits and to the extent above stated, but not otherwise, The Niagara Falls
Power Company respectfully renews its application for a franchise in the city of Buffalo.
Municipal ownership became a topic of active discussion among the citizens.
The financial requirements of such relations to Niagara power as those pro-
posed were soon understood to be impracticable, and the negotiations were
resumed for a franchise for the introduction and distribution of electric energy
by The Niagara Falls Power Company within the municipal limits. No
definite results, however, were attained until the close of the year 1895.
The following is a record of the company's efforts to obtain favorable action
by the city of Buffalo from October 15, 1894 to June 30, 1897 :
1894
October 15 Petition of The Niagara Falls Power Company to the Common Council
of the city of Buffalo for franchise, authorizing the distribution of
electricity within said city. Filed in the City Clerk's Office, Oct. 22,
1894, and referred.
1895
December 2 Franchises of the city of Buffalo to several companies for the intro-
duction of electrical power within the city were adopted by the
Common Council. Tax of 2l/> per cent on gross receipts after six
years. Franchise for thirty-six years.
December 16 Approval by mayor of power franchise adopted by Common Council,
December 2, 1895.
1896
January 14 Resolution of board of directors of The Niagara Falls Power Com-
pany, accepting grant by the city of Buffalo for the introduction
of electrical power within the city.
June 18 Certificate of Incorporation of the Cataract Power and Conduit
Company filed in Erie County Clerk's Office.
June 22 Plans and specifications, submitted by The Niagara Falls Power
Company, having been approved by the Board of Public Works,
the Common Council granted the Cataract Power and Conduit
Company permission to lay conduits.
June 24 The Niagara Falls Power Company made an assignment of its Buffalo
franchise to the Cataract Power and Conduit Company that was
accepted by Conduit Company.
339
NIAGARA POWER
July 13 Assignment of Buffalo franchise by The Niagara Falls Power Com-
pany and its acceptance by the Cataract Power and Conduit
Company took effect as of this date, by resolution of the Common
Council passed October 5, 1896, concurred in by the board of
councilmen, October 7, 1896.
November 15 Power transmission to Buffalo inaugurated.
1897
June 30 Resolution of Common Council of the city of Buffalo, adopting the
report of the Street Committee amending the franchise.
This is a partial record of strenuous efforts for about two years on the part
of those who were associated with the Niagara enterprise and held responsible
positions in the manufacturing community of Buffalo, and who, while desirous
of reducing the cost of the power that they used, had yet to be convinced of the
safety and economy of electric power, particularly in alternating currents,
by a careful study of its characteristics for which there was no precedent to
inspire their confidence or to direct their methods.
Franchises from the Tonawanda municipality were obtained by The Niag-
ara Falls Power Company in 1898 and assigned to the Tonawanda Cataract
Power Company organized in 1899 therefor, with a capital of $100,000 of
which 60 per cent was owned by the Niagara company. The first board of
directors was composed of Edward D. Adams, Francis Lynde Stetson,
Edward A. Wickes and William B. Rankine (La Partie Carree) and Charles
A. Sweet, Lincoln A. Groat of Buffalo, and De Lancey Rankine of Niagara
Falls.
The Tonawanda Lighting and Power Company, the local organization
supplying direct-current light, was merged with the new company, under the
name of the Tonawanda Power Company, and its entire capital stock was
acquired by The Niagara Falls Power Company. On June 1, 1917, these
shares were sold to local interests in the Tonawandas at $175 per share, thereby
increasing the assets of The Niagara Falls Power Company by $437,500 cash.
ORGANIZATION OF CATAKACT POWER AND CONDUIT COMPANY
The insurance statistics indicated that there were about 400 steam boilers
in active use in Buffalo at that period, having a total rating of more than 33,500
effective horse-power. The fact that steam-coal in Buffalo was then, as for
some years, selling in large quantities at a price not much exceeding $2 per
ton, gave a basis upon which to estimate at what price electric power and light
must be available in Buffalo in order to meet the competition resulting from
the use of coal upon the conditions named. Fortunately the largest consumers
340
TRANSMISSION COMPANIES
of light and power in Buffalo were the International Railroad Company and
the Buffalo General Electric Company that were under a personal manage-
ment familiar with the problems connected with the production of power.
Those conducting the electric light company were naturally interested in the
announcement of the Niagara company's intention to extend its line to Buf-
falo, and were quite willing to consider the subject of co-operation when it
Daniel O'Day
1844-1906
Director
Cataract Power and Conduit Company
was suggested that the Niagara company desired only to bring its power to a
station at the outskirts of Buffalo where it was willing to sell the same at a
wholesale price to a distributing company.
As a company which had established the largest of units as expressed in
water resources and mechanical and electrical devices for the development of
power, The Niagara Falls Power Company was a producer en gros that
desired a distributer en detail. Effective co-operation in distribution required
local representation by citizens of influence.
341
NIAGARA POWER
It was seen that the financial structure of the distributing organization
should start with the credit of The Niagara Falls Power Company, to which
it would invite the association of influential and successful local interests.
It was finally concluded that the best way to create a mutuality of interest,
as one of the essential details of success in such a venture, was to organize an
intermediate company for operation in Buffalo and to obtain through sub-
scriptions to its securities the co-operation of some of its most enterprising and
George Urban, Jr.
Incorporator and President
Cataract Power and Conduit Company
influential citizens interested in the establishment of Niagara electrical power
in the municipality of Buffalo. This was accomplished by the organization
of the Cataract Power and Conduit Company, with the allotment of subscrip-
tions to about one half its capital stock to the associates selected for that
purpose among citizens of Buffalo.
The Cataract Power and Conduit Company was incorporated under the
Transportation Corporation Law of the State of New York, June 17, 1896,
342
TRANSMISSION COMPANIES
by William B. Rankine, George Urban, Jr., and Charles R. Huntley, for the
period of fifty years, with an authorized capital stock of $2,000,000 divided
into 20,000 shares of a par value of $100 each. There was an authorized issue
of $2,000,000 in five per cent bonds, which were sold as funds were required
for construction.
The first board of directors was constituted as follows :
Daniel O'Day
George Urban, Jr.
Charles R. Huntley
Edward D. Adams
Buffalo
Buffalo
Buffalo
New York City
John Jacob Astor
Francis Lynde Stetson
Edward A. Wickes
William B. Rankine
Darius O. Mills
New York City
New York City
New York City
New York City
New York City
The executive officers were :
Executive Committee
Daniel O'Day John Jacob Astor
George Urban, Jr. Edward A. Wickes
William B. Rankine
Officers
President: George Urban, Jr.
Vice-president and General Manager : Charles R. Huntley
Secretary and Treasurer: William B. Rankine
The objects of the organization were stated to be
the use and distribution of electricity for light, heat or power within the city of Buffalo,
the construction of conduits, poles, pipes or other fixtures in, on, over and under the
streets, alleys, avenues, public parks, and places within the city of Buffalo for the con-
duct of wires and pipes and for conducting and distributing electricity or pneumatic or
other power or energy produced by the agency of electricity or otherwise ; the making,
selling, or leasing of machines, instruments, apparatus and other equipments for the dis-
tribution, delivery or practical application of electric or pneumatic or other energy,
and such other business as shall be naturally incident thereto or connected therewith.
It was also provided that no evidence of debt, to be secured by a mortgage
or other lien upon the property of the company, should be issued without the
consent of the holders of three-fourths of the capital stock ; also that no stock-
holder should be entitled to vote at any meeting for more than two-thirds of
the number of directors to be elected at such meeting.
343
■
NIAGARA POWER
The subscribers to the capital of the company as required for its construc-
tion, included the following residents of Buffalo and its vicinity:
The transmission of power, as electricity at a high voltage over wires,
strung on wooden poles extending from Niagara to Buffalo, constituted a
serious problem to various interests, besides those represented by The Cata-
ract Construction Company.
The state authorities desired to assist such a project, however novel, but in
the absence of precedents they necessarily relied upon the well-known char-
acter and responsibility of the applicants, and the watchfulness of their rep-
resentatives during progress of the work under a general permit, ready to
impose regulations should it seem desirable in the protection of citizens and
their property, whether they were to become beneficiaries of the scheme or not.
The applicants found it necessary to apply many times for additional priv-
ileges and powers, as experiences were gathered in acquiring the right-of-way,
by purchase, by lease, and by local permits to cross roads, canals, railways, etc.
The franchises were mainly such as would be required for an extension of
a public utility intended for general service in the interest of economy and
convenience in manufacturing and domestic activities.
Again, as a pioneer, The Cataract Construction Company had to find a
way to overcome unknown difficulties that arose and obstructed its progress.
Public interest was expressed by its curiosity. Niagara power was as
much needed en route at Tonawanda for instance, as in Buffalo to increase
property values and population. Would it be safe and sure? Could it be relied
upon, day and night, without interruption? And many other queries accom-
panied the declaration that "anyway, we will wait for Buffalo to act first."
Proposals were received from the General Electric and Westinghouse
Electric companies, which were in all essential respects alike. Each company
proposed a project for the transmission of 10,000 horse-power from the
bus-bars of the Niagara power-house to the sub-station at Buffalo, trans-
forming the two-phase currents generated at the power-house into three-
phase currents at 11,000 or 22,000 volts by step-up transformers.
H. B. Alverson
A. D. Bissell
Dann & Robinson
William P. Humbert
Francis R. Hunsicker
Charles R. Huntley
Franklin D. Locke
Daniel O'Day
Robert W. Pomeroy
De Lancey Rankine
Darius O. Mills
Charles A. Sweet
George H. Teller
George Urban, Jr
PROPOSALS FOR TRANSMISSION LINE
344
TRANSMISSION COMPANIES
The General Electric Company designed a single pole line with two cir-
cuits, and suggested, if desired, a second pole line with a spare circuit. The
Westinghouse Company proposed to use two lines of steel poles, each to carry
one circuit.
INCREASING USE OF NIAGARA POWER IN BUFFALO
Upon completion of its terminal house at the city line the Cataract Power
and Conduit Company began the supply of Niagara power in Buffalo on
November 15, 1896. The initial use was to the extent of approximately 1000
horse-power for the operation of street railways.
An important dinner was given on January 12, 1897, at the new Ellicott
Club in Buffalo, to commemorate the introduction of Niagara power into the
city of Buffalo, by the parties interested in promoting the introduction of this
power, at which various scientists were present and explained the latest de-
velopment in the electrical science and the facilities which were thereby af-
forded for the transmission of power, so that it could compete with the already
established steam plants which electrical machinery was designed to replace.
There were about 400 guests present, including many recognized leaders
among engineers, inventors, manufacturers and capitalists. The toasts and
speakers were
The Company Francis Lynde Stetson, of New York,
the toastmaster of the evening
Welcome to Buffalo His Honor Mayor Jewett
The Empire State Controller J. A. Roberts of Albany
Electricity Nikola Tesla, of New York
The City of Buffalo Charles W. Goodyear, of Buffalo
Water-power Charles A. Pillsbury, of Minneapolis
The New York Tribune reported that the general trend of the speeches was
admiration of the achievement, which it was said might justly be regarded
as one of the triumphs of the century, and prophecies of the great future
awaiting the Niagara frontier when the electric power reaches its fullest
development.
The growth of confidence notwithstanding the continuity and other ad-
vantages of the service was slow. The education of the manufacturers as to
the actual cost of their steam-power continued. Both curiosity and interest
prompted investigations of conduits, transformers and motors. Each new
motor installation was visited, experiences gathered and exchanged, and esti-
mates made of the cost of changing from steam to electricity. The services of
Horatio A. Foster, a mechanical and electrical engineer, were always available
345
NIAGARA POWER
for guidance in such studies, he having been stationed in Buffalo since 1897
as the representative of The Niagara Falls Power Company for such purpose.
There were many vexatious delays in extending the lines of transmission
of the Cataract Power and Conduit Company in the streets of the city
of Buffalo and in making installations for the customers' use of the electric
current. The net income earned from the sale of electricity was disappoint-
ing during the first years of its operation. There was, however, a steady
increase of customers, and after 1900 the growth of the business of the com-
pany was rapid. It was constantly urged to extend its lines of transmission
for new customers who awaited their opportunity to adopt the new power.
During the ten-year period from June, 1897, the company issued and disposed
of an average of about $85,000 bonds per annum for the extension of its system
of distribution in Buffalo, with the result that in 1906 the first mortgage five
per cent bonds to the amount of $1,000,000 had been issued and sold. As the
productive property was extended and more capital was invested, the cus-
tomers multiplied and the credit and popularity of the organization increased.
The rapid development of the use of electric power in Buffalo obliged the
Cataract Power and Conduit Company, when it ascertained that no additional
current could be obtained from The Niagara Palls Power Company for some
time, to contract with the Electrical Development Company of Ontario for
5000 horse-power to be delivered at the transformer-station of the Canadian
Niagara Power Company for transformation and transmission on its wires
to the Cataract Power and Conduit Company at Buffalo, where it was greatly
needed.
It has been stated that during the entire period of Cataract Power and Con-
duit Company's activities in distributing Niagara power, it had never lost a
customer on account of dissatisfaction with its rates or service.
The following charts show the record of growth in population and assessed
valuation of property in the city of Buffalo from the organization of The Cata-
ract Construction Company in 1886 through the consolidation of the Cataract
Power and Conduit Company, and the Buffalo General Electric Company,
under the title of the latter in 1915.
BUFFALO GENERAL ELECTRIC COMPANY PURCHASES CATARACT
POWER AND CONDUIT COMPANY
By agreement of December 18, 1913, that became effective July, 1915, the
Buffalo General Electric Company purchased from The Niagara Falls
Power Company its entire holdings, 10,050 shares, of the capital stock of the
Cataract Power and Conduit Company, at the price of $141 per share, pay-
able in $1,005,000 of the first refunding five per cent gold bonds, due 1939,
346
TRANSMISSION COMPANIES
of the Buffalo General Electric Company at par, and the balance in cash,
together with interest thereon at the rate of six per cent per annum from
December 1, 1913, to the date of the completion of the sale.
The Public Service Commission of New York, Second District, by its order
of June 24, 1915, had approved of this transaction and consented to the ac-
quisition by the Buffalo General Electric Company of all the outstanding
shares of the Cataract Power and Conduit Company, the merger of the two
« 1850 1860 1870 1880 1890 1900 1910 1920
600
500
400
300
200
100
Population in Thousands, City of Buffalo
companies, and the operation of the combined properties under the franchise
of the Buffalo General Electric Company.
In September, following the receipt of the bonds, they were sold en bloc at
the price of 95 per cent and accrued interest cash, and the proceeds $1,418,500
were added to the resources of The Niagara Falls Power Company.
1 The abrupt rise in the population line as charted from 1880 to 1890, should not be taken to indicate
that the marked increase in population began with 1880. The increase began actually about 1886 with the
plans for power utilization. The line is drawn from the point indicating the taking of the 1880 census to
the point indicating the taking of the 1890 census, and growth is therefore averaged and diagramed by
decades, not by years.
1850 - 42,261
1860 - 81,129
1870 - 117,714
1880 - 115,134
1890 - 255,664
1895 - 335,709
1900 - 352,387
1905 - 376,587
1910 - 423,715
1915 - 454,630
1920 - 506,775
347
NIAGARA POWER
ELECTRIC COMPANY ASSUMES MAJOR POSITION AT BUFFALO
The Buffalo General Electric Company, by its absorption in 1893 of the
three local companies,1 and by its purchase in 1915 of the Cataract Power and
Conduit Company that brought Niagara power to Buffalo in 1896, acquired
a major position in the electrical field of Buffalo, and by wise and libera]
management became a successful institution, of which the citizens of Buffalo
may well be proud.
1880 1885 1890 1895 1900 1905 1910 1915 1920 1925
1880 - $ 89,232,485
1881 - 92,250,315
1882 - 98,097,035
1883 - 101,903,705
1884 - 104,801,190
1885 - 108,37 1,1 15
1886 - 122,309,170
1887 - 128.031,295
1888 - 133,076,805
1889 - 157,512,570
1890 - 102,359,450
1891 - 179,957,350
1892 - 197,084,780
1893 - 222,572,885
1894 - 230,120,405
1895 - 234,051,400
1896 - 238,972,345
1897 - 247,388,275
1898 - 245,071,030
1899 - 230,909,535
1900 -$ 245.873,587
1901 - 242,349,138
1902 - 243,905,020
1903 - 252,021,505
1904 - 261,954,200
1905 - 205,819,700
1900 - 208,215,605
1907 - 289,410,570
1908 - 298,176.669
1909 - 307,000,555
1910 - 312,270,240
1911 - 322,700,045
1912 - 325,489,250
1913 - 330,080,105
1914 - 340,500,790
1915 - 381,007,500
1916 - 390,487.600
1917 - 533,821,340
1918 - 538,842.970
1919 - 500,079,750
1920 - 608,175,115
1921 - 054,357,185
1922 - 674.840,570
1923 - 722,445,290
1924 - 768,765.265
1
1
Assessed Valuation in Millions of Dollars, City of Buffalo
In 1923-1924 practically 90 per cent of all the industrial plants in Buffalo
were fully electrified.
President Huntley declared, "We are the link in the chain between the
producer of Niagara power and the consumer of power."
In its strength and in conformity with its business policy, the company
voluntarily and successively reduced its rates for electric current furnished its
customers, thereby, in each case, adding to its popularity and increasing its
business profits.
1 U. S. Electric Light and Power Company, Brush Electric Light Company, Thomson-Houston Electric
Light and Power Company.
348
TRANSMISSION COMPANIES
In the foresight of its management it favored the erection of a large addition
to its steam-electric river station to fully protect its customers in emergencies
and to provide for its ever-increasing demand. This station, with an addition
(which will bring the total capacity to 200,000 horse-power) almost complete,
is now a part of the Buffalo, Niagara and Eastern Power Corporation equip-
ment. It has been christened by resolution1 of the board of directors of the
The Charles R. Huntley Station, Exterior
Buffalo, Niagara and Eastern Power Corporation of October, 1926, "The
Charles R. Huntley Station" in honor of the late president.2
ORGANIZATION OF BUFFALO, NIAGARA AND EASTERN
POWER CORPORATION
On May 14, 1925, the Buffalo, Niagara and Eastern Power Corporation
was chartered under the laws of the State of New York for the purpose,
among others, of acquiring control of the properties of Buffalo General
1 Appendix G, Volume I.
2 See portrait and text on page 334.
349
NIAGARA POWER
Electric Company, The Niagara Falls Power Company, Tonawanda Power
Company, and Niagara, Lockport and Ontario Power Company, through
ownership of their common capital stock, and received permission from the
Public Service Commission to hold all or any part of the common capital stock
of each of the said four named companies.
Pursuant to permission granted by the Public Service Commission, Buffalo,
Niagara and Eastern Power Corporation issued its cumulative preferred
stock of the par value of $25 per share, entitled to receive dividends at the rate
of $1.60 per annum per share, and its common stock, without par value, in
exchange for the issued common capital stock of the four named companies.
More than 99 per cent of the total issued common capital stocks of the four
named companies has been exchanged. The stockholders of the Buffalo, Ni-
agara and Eastern Power Corporation and subsidiaries number approxi-
mately 20,000, and the vast majority are residents of the territory served.
As a matter of economics, the linking together of power-producing plants
and the interconnecting of neighboring distributing systems into a one-unit
service organization is most desirable. These four companies acquired, all
operating in western New York State, had a community of interest. The
grouping of their properties under a unified management results in a central-
ized policy and a co-ordinated system of production and distribution.
Hydro-electric power production at Niagara Falls necessarily must be con-
tinuous if the maximum use is to be made of the limited volume of water now
permitted by treaty to be diverted around the falls for power purposes. The
use of power by consuming industries and by communities continually varies
in peak requirements. By linking the Niagara power-plants with smaller
hydro-electric power-plants in the central part of New York State, and also
with steam-electric power-plants, there is provided through a single control
the greatest possible flexibility in the shifting of power whenever and
wherever needed. This is sound business and economic good sense.
SUMMARY FROM REPORT OF BUFFALO, NIAGARA AND EASTERN
POWER CORPORATION
The following abridged histories of the companies controlled by the Buffalo,
Niagara and Eastern Power Corporation, with short descriptions of their
properties are taken from the first report of the stockholders of the company,
March 1, 1926.
Buffalo General Electric Company: Incorporated under the laws of New
York, August 1, 1892, as a consolidation of the Brush Electric Light Com-
pany and the Thomson-Houston Electric Light and Power Company, which
350
The "Electric Building" at Buffalo
Executive Offices, Buffalo, New York
Buffalo General Electric Company
Buffalo, Niagara and Eastern Power Corporation
Niagara, Lockport and Ontario
Power Company
and other Allied Companies
NIAGARA POWER
latter company had previously absorbed the United States Electric Light and
Power Company. On September 1, 1915, merged the Cataract Power and
Conduit Company. It does the entire electric lighting and power business of
Buffalo, and also supplies Lackawanna, West Seneca, Blasdell, Cheektowaga,
Amherst, Williamsville, and Kenmore, and owns the entire capital stock of
the Niagara Electric Service Corporation, supplying Niagara Falls, New
York. Population served, 600,000. Steam-electric power-plant equipped with
three 20,000 kilowatt and one 35,000 kilowatt units, and a new 60,000 kilowatt
unit under construction. Energy also purchased from The Niagara Falls
Power Company.
The Niagara Falls Power Company: Incorporated under the laws of New
York, October 31, 1918, as a consolidation of The Niagara Falls Power Com-
pany (old company), Hydraulic Power Company of Niagara Falls, and
Cliff Electrical Distributing Company. The consolidation was made under
the terms of an agreement between the three corporations dated September
20, 1918. Owns and operates hydro-electric generating plants in Niagara
Falls, New York, and Niagara Falls, Ontario. The system has an aggregate
generating installation of 680,000 horse-power. Present restrictions on the
use of water from the Niagara River limit the output of the system plants to
about 500,000 horse-power. Owns approximately 1350 acres of land in and
adjacent to Niagara Falls, New York, devoted to sites for factories, trans-
mission lines and switching structures. Acquired Niagara Gorge Railroad
Company (1925), including its right-of-way at the river's edge through the
Niagara Gorge, its riparian rights and franchises. Owns all the stock of the
Niagara Junction Railway Company. Also owns all of the capital stock
(except directors' qualifying shares) and all of the funded obligations of the
Canadian Niagara Power Company, Limited.
Tonawanda Power Company: Incorporated under the laws of New York,
March 21, 1899, as a consolidation of the Tonawanda Lighting and Power
Company and the Tonawanda Cataract Power Company. Purchases electric
power from The Niagara Falls Power Company for distribution in North
Tonawanda, Tonawanda and adjacent sections, serving a population of about
40,000, and operating under perpetual franchises. Controls and owns all
capital stock of the La Salle Electric Corporation and the Grand Island Light
and Power Corporation, serving La Salle, and Grand Island, respectively.
Niagara, Lockport and Ontario Power Company: Incorporated May 20,
1894, to engage in the production and distribution of electric power in western
and central New York State. Owns and operates (a) hydro-electric plant on
the Salmon River northeast of Syracuse of 35,000 horse-power capacity; (b)
352
TRANSMISSION COMPANIES
a steam-electric generating plant at Lyons, New York, of 40,000 horse-power
capacity; leases a hydro-electric plant on the Oswego River at Minetto, New
York, of 12,000 horse-power capacity, and purchases from The Niagara Falls
Power Company and the Ontario Power Company (Canadian), under long
term contracts, 130,000 hydro-electric horse-power. Distributing system is
interconnected with the generating plants of The Niagara Falls Power Com-
pany and of the Hydro-Electric Power Commission of Ontario at Niagara Falls.
It is also interconnected with the Buffalo General Electric Company system at
Buffalo. The lines of the Niagara, Lockport and Ontario Power Company
are also connected up for emergency service and for the interchange of surplus
power with the following systems in contiguous territory: (a) Northern New
York Utilities, Incorporated, which owns and operates hydro-electric and
steam-electric generating plants and supplies electric service to cities, towns
and villages in several counties in northern New York State; (b) Adirondack
Power and Light Corporation which owns and operates hydro-electric and
steam-electric generating plants and serves cities, towns and villages in central
and eastern New York State; and (c) Penn Public Service System operating
hydro-electric and steam-electric plants and rendering electric service in the
states of Pennsylvania and Maryland. The generating capacity of the various
power sources interconnected through the Niagara, Lockport and Ontario
Power Company's transmission system aggregates more than 2,000,000
horse-power.
The territory reached, and served in whole or in part, by the Niagara, Lock-
port and Ontario Power Company embraces seventeen counties in New York
State and two in Pennsylvania with a population in excess of two million
people. The company holds franchises in more than two hundred cities,
villages and towns. Electric power is sold at wholesale to other public utility
companies and to municipalities, to electrically-operated railways, and retailed
for manufacturing, commercial and domestic service.
The following electric utility companies have been acquired and merged
with the Niagara, Lockport and Ontario Power Company: Salmon River
Power Company (1918), operated in Oswego, Onondaga and Wayne coun-
ties; Niagara and Erie Power Company (1922), operated in Erie and Chau-
tauqua counties; Western New York Electric Company (1925) , operated in
Chautauqua County; Olean Electric Light and Power Company (1925),
operated in Cattaraugus and Allegany counties; Livingston-Niagara Power
Company, operated in Livingston and Monroe counties ; Bryant Power Com-
pany, Incorporated, and Cambria Power Company, Incorporated, both op-
erated in Niagara County; Seneca Transmission Company, Incorporated,
353
TRANSMISSION COMPANIES
operated in Erie County; Bradford Electric Company, operated in McKean
County, Pennsylvania; and the Warren and Jamestown Street Railway,
operated between Warren, Pennsylvania, and Jamestown, New York.
Power Plants : The combined physical properties include electric generating
stations with a total installed capacity of 725,000 kilowatts, of which 545,000
kilowatts is hydro and 180,000 kilowatts is steam. This includes the 60,000
kilowatt unit now being installed in the River Station of the Buffalo General
Electric Company and which was put into service during the fall of 1926.
Limitations in the use of water for power development at Niagara Falls
reduce the operating capacity of the hydro-electric plants to approximately
80 per cent of their installed capacity.
While there were no major construction projects in work during 1925 in
connection with the hydro-electric generating plants at Niagara Falls, Ni-
agara Station No. 3-C, containing the three 70,000 horse-power units which
were put into commercial operation during 1924, was fully completed, and
official tests of these units were made for the Niagara Control Board. These
tests indicated a turbine efficiency of 93.8 per cent and a combined efficiency
of turbine and generator of 92 per cent. These efficiencies in the conversion of
the energy of falling water into electrical energy are higher than previously
have been attained in any hydro-electric power developments.
The Niagara generating plants were operated at capacity throughout the
year, within the limits of the governmental restrictions in the use of water. The
kilowatt hour output for the Niagara system reached a new high level for
the year with the stupendous total of 3,161,130,010, an increase of more than
10 per cent over the previous year, and 50 per cent above the output for 1918,
the year in which the present Niagara system first operated as a unit. This
output approximates one-third the total kilowatt hours of electricity sold by
central stations in the entire State of New York. To have produced this same
amount of electric service through the use of coal in steam-electric generating
plants would have required about three-and-one-half million tons of fuel.
Transmission Lines : The high-tension transmission system of the Niagara,
Lockport and Ontario Power Company weaves a network of lines over the
western and central part of New York State. It embraces 656 miles of lines
on steel towers and 788 miles of lines on wooden poles. There are 948 miles of
transmission circuits insulated for 110,000 volts, 200 miles insulated for
60,000 volts, and 693 miles insulated for from 4000 volts to 60,000 volts.
Right-of-way owned in fee, 376 miles; permanent easement for right-of-way,
302 miles. The land owned for transmission right-of-way approximates
4900 acres.
355
NIAGARA POWER
In addition to the transmission system above described, The Niagara Falls
Power Company owns various high-tension circuits between Niagara Falls
and Buffalo, and others connecting with the Niagara, Lockport and Ontario
Power Company's lines, all on steel towers.
Distributing Systems: The output of the generating plants of The Niagara
Falls Power Company is divided about equally between the electro-chemical
industries on the Niagara frontier and direct service as light, heat and power.
Interior of the Charles R. Huntley Station (Looking South)
Showing panels for location of Memorial Tablet
The Buffalo General Electric Company is the largest retail distributing unit
in the Buffalo, Niagara and Eastern group. It serves a population of about
600,000, with domestic and commercial users numbering 148,891 and has a
connected load of 495,800 kilowatts.
Summarizing: The power distributing agencies of the operating companies
controlled by Buffalo, Niagara and Eastern Power Corporation make power
available to about 450 cities, villages, towns, and lighting districts, located
in a zone some 300 miles from east to west and 100 miles from north to south,
having approximately 500,000 homes of which 80 per cent are either direct or
indirect customers of the system.
356
Terminal Station "D", Buffalo, Niagara and Eastern Power Corporation
The station through which passes the larger portion of the electric energy that is
delivered from the generators at Niagara Falls over the transmission lines
to Buffalo, from whence it is distributed over the associated companies'
lines of high tension transmission south and east, beyond the state lines
Volume One
APPENDICES A-G
APPENDIX A
A TRIBUTE
DR. COLEMAN SELLERS
BY LEWIS B. STILLWELL
Coleman Sellers, d.sc, e.d.
1827-1907
Chief Engineer
The Cataract Construction Company
President
— "
The Niagara Falls Power Company
A TRIBUTE TO
DR. COLEMAN SELLERS
I first met Dr. Coleman Sellers in the summer of 1890 in London. As engineering
adviser to the recently formed Cataract Construction Company, he and Mr. Edward D.
Adams, the president of that company, were seeking ideas and suggestions which might
be useful in solving the great problem of utilizing the power of Niagara Falls. With
this object in view, Mr. Adams had invited a number of engineers from time to time to
meet the Doctor and himself to discuss the subject. I happened to be in London at the
time on special detail from the staff of the American Westinghouse Electric Company
and, with Mr. Reginald Belfield, electrician of the British Westinghouse Electric Com-
pany, Ltd., was invited by Mr. Adams to meet Dr. Sellers and himself at Brown's Hotel
in Dover Street.
At the outstart, I was greatly impressed by Dr. Sellers' personality and keenness of
mind. At that time, he was sixty-three years of age and he brought to the consideration
of the problem a judgment trained by many years of active and varied engineering
experience. He brought also an enthusiastic interest rarely found in one no longer young.
As I realized increasingly in later years, enthusiasm, earnestness and a keen interest in
the matter in hand at all times characterized both the Doctor's work and his play.
At our first interview, I was impressed particularly by the nervous energy with
which he set forth various tentative plans which he had suggested. Later, when the
Niagara Power Commission was organized and prizes and bonuses were offered for the
best plan for utilizing power at the falls, Mr. Belfield and I were very keen to have
the American Westinghouse Company submit plans for the development and distribution
of power from a central plant by polyphase alternating current, but Mr. Westinghouse
would not consent. As he put it bluntly when I saw him a few months later in America :
"These people are trying to secure $100,000 worth of information by offering prizes,
the largest of which is $3000. When they are ready to do business, we will show them
how to do it."
Early in 1893, I again came in contact with Dr. Sellers, when, in response to an
invitation from Mr. Westinghouse, he and Professor Rowland visited Pittsburgh to
test the newly developed rotary converter and to determine the effect of comparatively
low frequencies upon incandescent lamps. From that time until 1897, as engineer of
the manufacturing company which constructed and installed the first generators and
their electrical equipment for the Niagara plant, and subsequently for three years as
electrical director of The Niagara Falls Power Company, it was my great, good fortune
to see much of the Doctor and of his work. No experience perhaps could give one a
more comprehensive or accurate knowledge of his character and ability than could be
acquired during such a period of close professional relationship, first, from the stand-
point of a representative of the contracting company, and, later, from the standpoint
of mutual interest and co-operation in the work of the Power Company. During all
those years and in all relations, Dr. Sellers' attitude was invariably that of the ideal
engineer — patient, always co-operative, zealous and tireless in protecting the interests
of his client but never unjust to others. Seeking to construct no monument to himself,
his sole object was to assist in the creation of a successful enterprise and the solution
of a fundamental engineering problem.
To understand and appreciate the importance of Dr. Sellers' work at Niagara, it is
necessary to realize the state of the art of power transmission at the dates when the
363
NIAGARA POWER
decisions of The Cataract Construction Company and of The Niagara Falls Power
Company were made. The most definite plan which had been suggested before Mr. Adams
and his associates acquired their charter contemplated an exclusively hydraulic devel-
opment, a canal of considerable length being used to convey water to mills and
factories located at various points convenient to the canal and a parallel outlet tunnel
approximately 150 feet beneath the surface, discharging into the Niagara gorge below
the falls. The power for each mill and factory, or closely adjacent group of mills and
factories, was to be developed by its own hydraulic turbines, receiving water from the
canal and discharging it into the outlet tunnel. As an alternative to this plan, which was
in line with American practise at Holyoke, Manchester, and elsewhere, the possibility
of one or more large centrally located plants, with some method of transmitting and
distributing power, was considered. In presenting its problem, the Company indicated
no prejudice or preference. The question asked was simply "How can the power at
Niagara best be utilized?"
Under such conditions, the work of The Niagara Falls Power Company, demanded
from its technical advisers skill, vision and judgment of a high order. Fortunately,
the management of the Company was eminently wise and far-sighted and under its
direction the minds of a selected group of the ablest scientists in America and Europe
were brought to bear upon the problem of utilizing the power of the Great Falls. From
Europe, came Lord Kelvin, Mascart, Turrettini, Unwin and Forbes. From America,
came Sellers, Herschel and Rowland. Plans and suggestions were obtained also from
many others at home and abroad.
Naturally, the plans suggested and, in many cases, strongly advocated, were various
and often divergent. The problem of constructive development faced was complex
and difficult. Its solution called not only for analytical and constructive ability of a
high order, but for untiring patience, foresight, and, above all, for sound judgment.
From 1890 to 1893, the engineers selected by Mr. Adams and his associates were
engaged in their far-reaching investigation. During this time, Dr. Sellers, by his char-
acter, his zeal, and his sound judgment, established himself gradually in the confidence
of the board until, by making him president and chief engineer of The Niagara Falls
Power Company, and requiring his approval of all construction plans, they placed upon
him full responsibility for deciding all engineering questions involved in their enterprise.
Prior to 1890, the practicability of transmitting large amounts of power by elec-
tricity had not been demonstrated. In America, the determining steps in the develop-
ment of the art of electric transmission were taken between 1885, when the idea of
supplying incandescent lamps by alternating current through the intervention of trans-
formers was brought to America, and 1895, when the first alternator was put into
commercial service at Niagara. Since then, progress in this field has been measured by
a gradual increase in size and efficiency of hydraulic and electric units, and, by step-by-
step progress, in the development of high-tension insulators and the mechanical supports
for transmission circuits. The first plant of The Niagara Falls Power Company in-
volved steps relatively greater than any since taken. In those early days applicable
theory was in its infancy, while practical precedent on a comparable scale did not exist.
The extent to which the judgment and painstaking investigation of Dr. Sellers
influenced electrical development in America along lines now well established has not
generally been recognized. As a member of the International Niagara Commission, he
364
APPENDIX
opposed successfully. a resolution moved by Lord Kelvin himself which aimed to exclude
from further consideration all systems of electrical power transmission other than
direct-current systems. Dr. Sellers wisely took the ground that the Commission's
knowledge of the possibilities of the alternating current at that time was not sufficient
to justify action which would close the doors to that system. Fortunately, his opinion
prevailed. Few at this time would question the soundness of his judgment.
When the rapid development of alternating-current lighting and power systems led
to general recognition of the transformer as the key to the problem of electrical trans-
mission, advisers both within and without the organization presented for consideration
the claim of various voltages and frequencies. The two-phase and the three-phase
systems had their respective advocates and strong supporters of various direct-current
systems still were active. The electrical experts of The Cataract Construction Company
failed to agree in regard to various essential features and in exercising his power of
supervision and approval of all plans, Dr. Sellers accepted heavy responsibility not
only in his own special field of mechanical engineering but in the hydraulic and electrical
fields as well.
From 1889 to 1893, many important questions of engineering practise, in respect
to which there is now practical unanimity of opinion, were earnestly debated. In those
years, the Doctor, sound in his judgment, conciliatory toward others, untiring in his
effort to secure for his company what would stand the test of time, was the adviser
whose counsel chiefly guided his company in regard to all technical questions. His broad
knowledge of physical science and his long experience in dealing with mechanical prob-
lems qualified him pre-eminently in an enterprise involving large investment in a new
field. From personal knowledge, I can testify that his impersonality, his enthusiastic
energy and his courage in assuming great responsibility were in every way admirable.
The far-reaching influence of the first plant of The Niagara Falls Power Company
upon the development of the art of transmitting power by electricity has been widely
recognized and instances might be multiplied in which his foresight avoided or skill
surmounted difficulties which but for him would have handicapped seriously the remark-
able engineering and industrial development to which that plant contributed so much
of value.
As an engineer, he earned the highest respect of his associates and of all with whom
he had dealings. As a man, he won not only the respect but also the affection of all who
were admitted within the circle of his friendship.
/^>*?^
December 31
1924.
Under the above date Mr. Stillwell wrote Mr. Adams when sending him the above
tribute to Dr. Sellers, stating,
"I appreciate highly the opportunity to incorporate my tribute to the Doctor in your
forthcoming volumes.
"I knew the Doctor well enough to appreciate keenly the intense satisfaction it would
have given him could he have foreseen that you would complete your great work in con-
nection with the Niagara enterprise by becoming its historian."
365
APPENDIX B
EROSION AND RECESSION
OF
NIAGARA FALLS
NIAGARA FALLS
ITS PAST, PRESENT AND PKOSPECTIVE CONDITION, EXPLAINED BY JAMES HALL,
STATE GEOLOGIST, IN HIS FINAL REPORT OF THE FOURTH GEOLOGICAL
DISTRICT OF THE STATE OF NEW YORK, 1843, FROM WHICH
HAVE BEEN TAKEN THE FOLLOWING EXCERPTS :
The conclusion then, seems inevitable, that the river has been the great agent in
excavating its own channel, from near the escarpment between Lewiston and Queenstown,
to the present position of the cataract ; that the recession has been aided by the character
of the rocks, presenting alternate hard and soft strata ; and that the descent was over-
come, not by one perpendicular fall, but by several. In support of this latter as-
sertion, a single analogous case will furnish stronger evidence than a long argument.
The course of the Oak-orchard creek, in Orleans County, is over the same strata, and
exhibits the succession of falls and rapids, precisely in the manner I have just
enumerated. The quantity of water, however, in the stream, is too small to produce
anything like a degree of recession to compare with the Niagara River
Whatever facts and arguments may be advanced to prove the existence of phenomena
indicating the former action of the sea in excavating the Niagara channel, and whatever
objections may be advanced for or against other theories, I am fully convinced, from
the facts presented, that the existence of the falls and the Niagara River, in their
present position, is of very recent date geologically.
We come now to consider the future recession of the Niagara Falls, and its conse-
quences. This is a subject on which many speculations have been hazarded, but no one
appears to have undertaken the calculation with a full knowledge of the geology of the
district, or to have taken into account the many disturbing influences. At the present
time, the cliff over which the water is precipitated, is nearly equally divided between
thick-bedded limestone and soft disintegrating shale. It is by the action of the spray
from the falling water upon the shale undermining and leaving the limestone unsup-
ported, which falls down by its own weight, that the falls recede from their present
position. Now if we believe the statements of those who have resided at the falls, the
recession has been about fifty yards within the last forty years ; but from all the data
I have been able to obtain, this appears to be much too great an estimate ; indeed, it
is extremely questionable if the fall has receded as many feet within that time. The
central portion of the Horseshoe Fall recedes more rapidly than any other part, for
here the greatest force of the river is exerted. We know, likewise, from the testimony
of all residents at this place, that the American Fall is becoming more curved in its
outline, whereas, formerly it was nearly in a straight line. The successive descent of
large masses of limestone, and the still continued overhanging of the table rock, prove
very conclusively the unremitting action of water and air upon the shale below.
In the absence of established landmarks, we are compelled to leave the rate of reces-
sion unsettled for the present. The accompanying1 trigonometrical map of the falls
will furnish the means of doing this, by the monuments which have been established,
and which may be considered as permanent points of reference for the future.
Leaving out of view the time or rate of recession, we have sufficient data to establish
with certainty the future changes which will supervene, allowing the recession to go on as
it is now doing. The lower half of the rock at the cascade, or about eighty feet, is of
soft shale, the limestone above being of equal thickness ; higher still is about sixty feet
1 See Chapter XX, page 403, of Geological Report of James Hall, Geologist.
369
NIAGARA POWER
of thin-bedded limestone, forming the rapids. Now these beds dip to the south at the
rate of about twenty-five feet in the mile, and the declivity of the bed of the river is about
fifteen feet in the mile from the falls to Lewiston. It follows, therefore, that as the falls
recede, there will be a less amount of shale above water, owing to the dip ; and to this
must be added the amount of declivity in the river bed, both together making forty
feet. So that when the fall has receded one mile, the surface of the water will stand
at a point in the shale half way between the present surface of the water and the bottom
of the limestone. Going on at this rate for another mile would take away from the fall
forty feet more of the shale, so that the surface of the river would then stand at the base
of the limestone.
The cataract would then have a solid wall of limestone to wear down, the river
beneath protecting, in a great measure, the undermining action upon the shale. During
this time, and at the end of the first mile, the falls would have arrived at the present
site of the commencement of the rapids, and thus about sixty feet more of limestone
would be added to the height; unless from its thin-bedded character it continued to
recede faster, and thus remain a rapid. In this case, there would be a fall of 140 feet
at the end of the first mile ; and one of 100 feet at the end of the second mile.
At this period, then, we are to contemplate the cataract of Niagara as having
receded two miles, the shale having disappeared beneath the river, and the cascade pre-
senting a solid wall of limestone 100 feet high, and a rapid of forty or fifty feet (o, m)
beyond. The recession will then go on very gradually ; and so soon as masses from this
cliff have fallen down to fill up the river bed, as they inevitably will in a great measure,
then the base will be protected so effectually that little influence will be exerted by the
force of the water. Eventually, however, the cliff will be broken down, and huge frag-
ments piled up below, until the cataract will be nearly lost amid them. This state of
things will continue for a long time, the height gradually diminishing, till the river
has cut its way back for two miles further, when there will be no thick-bedded limestone
above water, and the higher beds will form a rapid as before.
This point of meeting between the surface of the river below the fall and the top of the
thick-bedded limestone, will be about one hundred feet lower than the top of the present
cascade ; and as there will be forty feet of rapids in the thin-bedded limestone within a
short space, as there now is, it follows that there will be added to the descent of the
river beyond the rapids, one hundred feet more than at present, as the surface of the
limestone has dipped to that amount. The whole fall in the river at that time, from
Lake Erie to the point of junction between the limestone and water below the rapids,
will be about one hundred and sixty feet. The distance between this point and the outlet
of Lake Erie is occupied by nearly uniform soft layers ; and after a partial wearing
down of the limestone forming the rapids, the descent will be equally distributed over
the whole extent of sixteen miles, giving a uniform declivity of about ten feet in the
mile, or one-third less than the present declivity in the bed of the river from the falls
to Lewiston. From the nature of the bed of the river for sixteen miles below Lake Erie,
it may be doubted whether this rapid descent along the whole distance would be con-
tinued; for the stream, having no heavy blocks of rock to remove, would keep its
channel clear with a far less declivity ; and should this prove the case here, we might
still have a fall of a few feet, at the outlet of Lake Erie, over the limestone succeeding
the salt group.
370
APPENDIX
Whether such a fall would occur depends upon the solution of the problem regarding
the required declivity in the bed of the river below Lake Erie. Whichever way it may
occur, it will make no material difference in the great result, which will be either a
continuous rapid stream from Lake Erie to Lewiston, or a rapid stream with a low
fall at the outlet of Erie. If present causes continue to operate as now, such will be
the consummation of the grand cataract of Niagara.
371
APPENDIX C
June 25, 1825
Invitation to Eastern Capitalists and Manufacturers,
signed by Augustus Porter and P. B. Porter.
Januar}r, 1847
To Capitalists and Manufacturers, signed by Augustus
Porter.
Undated, probably about 1877
Niagara Falls Canal Company, unsigned.
INVITATIONS TO CAPITALISTS
Circulars issued at Niagara Falls, describing the advan-
tages of the location as a residence and particularly for the
use of the water-power of the great river and falls, in manu-
facturing, for which unusual facilities in raw material, trans-
portation and mill-sites were available upon moderate terms.
NIAGARA FALLS
1825
INVITATION TO EASTERN
CAPITALISTS AND MANUFACTURERS
The subscribers are proprietors of the lands which embrace the rapids and falls, on
the American side of the Niagara ; and also of Iris, Bath, and the other small islands lying
in the rapids, and connected, by bridges, with the main shore. The situation is not sur-
passed, and probably not equalled, in the United States, as a site for the establishment
of manufactures, whether viewed in reference to its intrinsic advantages, or to its
exterior facilities for the collection of manufacturing materials, and the distribution
of fabrics. The country in the vicinity of the falls is rich in soil, romantically beautiful
in formation, and proverbial for salubrity. The pure and limpid waters of the Niagara —
always flowing with an uniform current, and full banks — are as propitious to the health,
as they are conducive to the comfort and luxury of its inhabitants. From the head of
the rapids to the Great Falls, a distance of three-fourths of a mile, there is a regular
succession of chutes, which give, in the aggregate, sixty feet of perpendicular descent ;
and the adjoining banks appear to have been expressly designed for the convenience
of leading water from the river for hydraulic operations. Practically speaking, the
extent to which water-power may be here applied is without limit. A thousand mills
might be erected with the same ease, and equally accessible, as if on a plain ; and each
supplied with a never-failing water-power, at an expense not exceeding fifty dollars,
and be at the same time, perfectly secure against the dangers of inundation. This
position is connected with the grand canal by an excellent boat navigation of ten miles
in length, terminating in the canal at the mouth of Tonnewanta creek, through a lock
of five feet lift — and with Erie and the other western lakes, by a safe and uninter-
rupted sloop navigation. In the opposite direction, it is only seven miles distant from
Lewiston, the head of the sloop navigation of Lake Ontario and the St. Lawrence. The
communication with Lewiston is, at present, by a good road, but will probably soon
be improved by the substitution of a canal or railway. The extensive forests which
border the Niagara, the lake and the canal, and cover the islands in the river, will furnish
a cheap and abundant supply of fuel for manufacturing purposes, for many years to
come ; and until the canals, already commenced, between Lake Erie and the Ohio, shall
open a ready and cheap access to the vast beds of stone coal with which the whole of
that region abounds. Adjoining and attached to the mill seats, the subscribers own a
tract of land on the main shore, amply sufficient for the site of a large town, which
must soon grow up at this place; and for the accommodation of its inhabitants with
out-lots. Iris Island contains about seventy acres of excellent land, the upper half of
which might be covered with machinery, propelled by water-powrer ; and the lower
half, situated in the midst of the falls and rapids, where Nature courts the imagination
in her most sublime, beautiful and fascinating forms, might be converted into delightful
seats for the residence of private gentlemen, or appropriated to hotels and pleasure
grounds for the accommodation of the numerous strangers who annually visit this
spot. A number of manufactories, on a scale adapted to the wants of the immediate
vicinity, have already been erected, and are now in successful operation at this place ;
among which are, a large and valuable grist-mill, saw-mill, two woollen cloth factories,
two clothier's shops, several carding and spinning machines, a forge, paper-mill, etc.
375
NIAGARA POWER
The subscribers would sell the whole of their property at this place (with the exception
of the farm and private buildings of one of the proprietors) together; or they would
divide it into several parts, and appropriate to each any desired number of water
privileges. They would, however, be most gratified by seeing it in the hands of a single
company, in which they would be glad to be interested themselves to the extent of
their means. Such a company, with a commanding capital, and under a well-organized
and efficient administration of its concerns, might build up an establishment which
would successfully compete with any thing of the kind in the United States ; and would
be, at once, highly useful and creditable to the country, and lucrative to themselves.
The manufacture of woollen, cotton and linen goods, on an extensive scale — of iron, in
all its numerous and extended ramifications ; and of bread stuffs, might be undertaken
to great advantage. The lake county is celebrated for the best and most abundant
crops of wheat. An inexhaustible mine of iron ore, of the best quality, has lately been
discovered on the margin of Lake Erie. The whole country abounds in wool ; hemp and
flax grow in great luxuriance, and cotton might, at present, be introduced at a moderate
expense of transportation, through the Atlantic and the Erie Canal ; and, at no distant
day, still cheaper, through the Mississippi and the Ohio canals. The general deficiency
of water-power that exists along the country of the lakes — the increasing, and, already
immense, population which surrounds them — their remoteness from the Atlantic ports,
and the profusion and cheapness of stock and provisions, are circumstances calculated
to give this place a decided advantage over similar establishments in the eastern states,
in a competition with European manufacturers. The inadequacy of capital in this part
of the country to undertakings of this kind, added to the doubts which have, until very
recently, existed in regard to the success of American manufactures generally, have
hitherto prevented the improvements which this situation so powerfully invites. The
title to the property is unquestionable, having been derived immediately from the state
of New York.
Any information, connected with the subjects of this advertisement, will be cheer-
fully given by Augustus Porter, who resides at the falls, or by Peter B. Porter, at
Black Rock.
Aug's Porter,
June 24th, 1825. P. B. Porter.
376
TO CAPITALISTS AND MANUFACTURERS
With a view to the more convenient and extensive use of the unlimited water power at
the Falls of Niagara, the subscriber has located a large raceway, to serve also as a
navigable canal ; commencing at a point on the shore of the river where the water is
deep and navigable, above the great Falls, and terminating on the high bank about
half a mile below. This canal, about three-fourths of a mile in length, has been surveyed,
and levels taken by an experienced Engineer, who estimates the whole cost of the canal,
with its appurtenances, of sufficient capacity to afford water power for at least sixty run
of mill stone, within the sum of Thirty thousand dollars.
The front along the bank of the river near the lower termination of the canal,
extending about three thousand feet (now unoccupied) can be most conveniently sup-
plied with water from the canal, and is adapted to the building of large establishments,
on a foundation of solid rock, and with any required head and fall.
The quantity of water that may be used can only be limited by the size of the canal,
which may be enlarged to any extent, at an expense somewhat less in proportion than
the cost of the one now proposed.
The Niagara River, the inexhaustible source, is unaffected by floods or droughts, and
at the point where the canal is supplied, will be entirely free from obstruction by ice.
The subscriber now offers to sell the right of constructing and using such a canal,
and so much land as may be desired, from twenty to one hundred acres at the lower
termination thereof, to any person or persons who will undertake its immediate con-
struction. Or he will sell a less interest, retaining a part, and contributing to the
improvement.
Further description of the property is not deemed necessary, but any desired informa-
tion will be promptly communicated; and reference is made to William A. Bird, Esq.,
of Black Rock, and Peter Emslie, Esq., Civil Engineer, Buffalo.
Niagara Falls, January, 1847. AUGUSTUS PORTER.
An outline map of Niagara Falls and Village was attached to this circular showing
the location of the proposed Hydraulic Canal and Reservoir, by P. Emslie, December,
1846. See page 232.
377
^J^ifif^® Niagara Falls, Niagara County, New York.
J.F.
Buffalo, N. Y.
A. M.
Niagara Falls. N. Y.
r Stephen M. Allen,
*^»f Boston,, Mass.
l Miles Standish,
187, Broadway, N. Y.
The proprietors of the Niagara Falls Canal and property, including the greatest
w ater power in the world and one hundred Mill and Factory sites with three hundred
cottage lots, now offer the same for sale on reasonable and accommodating terms to all
such as desire to establish and carry on manufacturing in Western New York. This
property is so situated that the same can be used by the most humble manufacturer
who may wish to run his own mill, or will meet the wants of Companies who desire to
compete with the largest monopolies of the country in the production of any kind of
manufactured goods. The Niagara River at this point turns at nearly a right angle,
the great falls running across from the right angle almost in a continuation with one
of the shores, the village lying within the angle.
The Hydraulic Canal opens from the river about one mile above the Falls, and at the
end of steamboat and other navigation, and runs directly across the town to the River
bank about a quarter of a mile below the American Fall. A basin, to be continued about
one mile in length along the river bank on the Company's lands, receives and discharges
the water from the Canal through raceways or flumes to each factory site in quantities
to suit, and with a perpendicular fall of any desired height not exceeding one hundred
and ninety feet. The present size and capacity of the Canal at its mouth is sixty-six
feet in width, with ten feet depth of water which is maintained with slight variation
throughout the whole year. The depth of water in the basin below is eleven feet, and
canal boats pass without difficulty. Neither in winter nor at any other time during the
year is there trouble from anchor or floating ice, and the whole water power is a
perfectly uniform one. The canal is cut through solid limestone rock, and is about
one mile in length, the average cut being twenty-two feet, with perpendicular walls and
no wash of banks to make the water impure. The Canal can be enlarged to the width
of one hundred feet, and building stone for factories can be quarried from its banks
and floated down in boats to any point desired.
The facilities for the transportation of freight both by land and water are unsur-
passed in the United States. The New York Central and Erie Rail Roads cross the
lands of the Company and can be connected by side tracks of a few rods in length
with the banks of the Canal or factories on the same, thus connecting with all the
Rail Roads in the United States and the Canadas. Canal Boats loaded in New York
City or the Western States, can unload and load again in the canal basin within a
378
APPENDIX
quarter of a mile of the American Fall. Vessels loaded on Lake Superioi*, Michigan,
or at any of the lake ports of the West can discharge and reload at Niagara Falls
for any American or European port. This central point for the manufacturing business
of the States, Canada, or for the exportation of manufactured goods to any part of
the world, has many superior advantages of location as well as of water power.
The costs of living are less than in most manufacturing districts, and taxation re-
markably low. The great West is open for every supply from that region while it is
a notorious fact that many other of the necessaries of life can be sold cheaper than in
New York City. Coal and iron can be delivered on the line of the Canal, as can almost
every other commodity needed in manufacturing, from the cars or vessels in which they
are first placed for transportation.
The sites for factories and other mills for every variety of manufacture will be sold
low according to location and size, and the water at one thousand dollars per square
foot of open weir surface at the head of the Canal, and the opening in the gates below
to correspond in size to the square of water purchased, whatever that may be. There-
fore persons can purchase one foot or more upward to ten square feet as they may
wish at the same rate, and may use as much of the fall as they please.
J. P. Frizzell, Esq., an experienced engineer of Boston, estimates that a square
foot of water at the entrance of the Canal which would be one six hundred and sixtieth
part of the whole in-flow of water, with a velocity of two and a half cubic feet per
second
On a fall of twenty feet (20 ft.) will give 4.16 horse power.
On a fall of thirty feet (30 ft.) will give 6.25 horse power.
On a fall of fort}7 feet (40 ft.) will give 8.33 horse power.
On a fall of fifty feet (50 ft.) will give 10.41 horse power.
On a fall of sixty feet (60 ft.) will give 12.50 horse power.
On a fall of one hundred feet (100 ft.) will give 20.83 horse power
On a fall of two hundred feet (200 ft.) will give 41.67 horse power.
This is a much more liberal estimate for loss of power upon water-wheels than is
generally allowed. By multiplying, any additional power will be given by adding any
number of square feet of water desired in the purchase.
379
APPENDIX D
CIRCULARS TO STOCKHOLDERS
Number 16, 1892
Number 65, 1903
Number 84, 1918
Circular No. 16
OFFICE OF
THE CATARACT CONSTRUCTION COMPANY,
Mills Building, New York, June 10, 1892.
To the Subscribers under the Agreement of January 17, 1890:
In the Annual Report to the Stockholders of the Cataract Construction Company,
dated July 31, 1891, reference was made to the proposed formation of a
LAND COMPANY
for the development of the residential tract of about 400 acres reserved for this purpose
by the Niagara Power Company from the lien of its mortgage.
The scarcity of available houses and the necessity of providing proper homes for the
families of the better class of operatives already seeking accommodations at Niagara
Falls have induced the Directors of this Company to proceed immediately with their
plans for the construction of suitable dwellings and the preparation of the lands
appropriated for such improvements.
The Niagara Development Company has been organized under the Laws of the
State of New York, with the following officers and directors (it being now intended that
the officers and directors of the Construction Company, the Land Company and the
Terminal Railway Company shall be identical) :
EDWARD D. ADAMS, President.
FRANCIS LYNDE STETSON, First Vice-President.
EDWARD A. WICKES, Second Vice-President.
WILLIAM B. RANKINE, Secretary and Treasurer.
GEORGE S. BOWDOIN, Director.
CHARLES F. CLARK, Director.
CHARLES LANIER, Director.
JOSEPH LAROCQUE, Director.
DARIUS OGDEN MILLS, Director.
FREDERICK W. WHITRIDGE, Director.
CHARLES A. SWEET, Director.
GEORGE B. BURBANK, Chief Engineer.
The Development Company has an authorized capital of $1,250,000, to be issued as
Common Stock $750,000
Preferred Stock 500,000
Total $1,250,000
all divided into shares of $100 each, and with equal voting power.
383
NIAGARA POWER
The Preferred Stock is entitled (both as to principal and dividends) to a preference
over the Common Stock in the distribution of assets and income, and to cumulative
dividends at the rate of eight per cent, per annum, payable out of net profits July 1 and
January 1 in each year; no payment to be made before July 1, 1893, nor for any
period prior to January 1, 1893.
The Preferred Stock will be convertible into Common Stock, share for share, at the
option of the holder at any semi-annual period.
It is provided that no mortgage lien can be created without the approval of two-
thirds in amount of the Preferred Stock outstanding at the time of the execution of any
such mortgage.
In view of the benefits to accrue to the Niagara Power Company, from this necessary
development of a residential tract, and also in view of recent sales of neighboring
property of similar character at prices exceeding $2,500 per acre, the Power Company
has agreed to sell its above-mentioned residential tract, comprising 368 acres, at the
price of $2,038 per acre, amounting to $750,000, accepting in payment therefor at
par all the Common Stock of the Land Company. This land was appraised, in writing,
June 1, 1892, by disinterested experts of large experience, at $3,000 per acre, or more
than $1,100,000 in all.
To provide funds for the maintenance and improvement of this property and the
construction of dwellings, 4,800 shares of the Preferred Stock of the par value of
$480,000 are offered for sale at $100 per share; subscriptions to be payable in install-
ments of not more than 10 per cent, each, not less than one month apart. Certificates
of full-paid Preferred Stock will be delivered on or about January 1, 1893, for all
installments then paid and for interest thereon at eight per cent, from date of payment.
Scrip redeemable in Preferred Stock will be issued for fractional amounts.
It is believed that this stock, having a first claim upon 368 acres of valuable land
within the limits of the City of Niagara Falls, which cannot be mortgaged except with
the consent of holders of two-thirds of this Preferred Stock, and which is to be used
not for the purchase, but only for the improvement and maintenance of the propert}',
is specially valuable as an investment.
In the same Annual Report the project for a
TERMINAL RAILWAY
was set forth. It has become necessary, in the opinion of the Directors of this Company
and the Power Company, that this Railway should now be built for the delivery of
materials for construction and other materials to the lessees of the Power Company.
The line as located is about six miles in length, and, excepting less than one-
fifth of a mile, is entirely within the estate owned by the Power Company. By its
connection with the New York Central & Hudson River Railroad, the Erie Railway, and
docks on the Niagara River, the tenants of the Power Company and all rail and water
lines of transportation are to be placed in direct business relations. A considerable
amount of business is already awaiting this railroad, and much more is proposed to it,
so that an immediate earning capacity seems assured.
384
APPENDIX
The Niagara Junction Railway Company has been organized under the Laws of
the State of New York, with the same Directors and Officers as the Land Company,
and with an authorized capital to be issued as
Common Stock $160,000
Preferred Stock 140,000
Total $300,000
all divided into shares of $100 each, and with like voting power.
The Preferred Stock will have a preference over the Common Stock only as to
income, limited to cumulative dividends at the rate of eight per cent, per annum, payable
out of net profits July 1 and January 1 in each year ; no payment to be made before
July 1, 1893, nor for any period prior to January 1, 1893.
The Preferred Stock will be convertible into Common Stock, share for share, at the
option of the holder at any semi-annual period.
By the provisions of the Trust Deed, securing the first mortgage bonds of the Power
Company, the right of way for a railway through the property of that Company, as
determined by the Power Company prior to July 1, 1892, was expressly exempted
from the lien of that mortgage.
The land necessary for a double-track railway, with connections, sidings and yard
facilities, being in all 166 acres (of which about 70 acres of yard is subject to the
general mortgage), is to be conveyed to the Junction Railway Company for the sum of
$160,000, payable in its entire Common Stock at par. This land was appraised June 1,
1892, at $2,500 per acre, or more than $400,000 in all.
For acquisition of right of way for a limited part of the line not derived from the
Power Company, for construction, for purchase of equipment now necessary, and for
operation as a single-track line, 1,200 shares ( $120,000 par value) of the Preferred
Stock are offered for sale at $100 per share; subscriptions to be payable as and when
called at option of Company on or before January 1, 1893, when certificates of fully-
paid Preferred Stock will be issued for all payments and for interest at eight per cent,
from the date thereof. Scrip redeemable in Preferred Stock will be issued for fractional
amounts.
Should the business of the Company so develop as to require provision for extensive
improvement, equipment and operation, as is now expected, a mortgage not exceeding
$500,000, to be devoted to those purposes, may, when authorized by stockholders, be
provided.
It will be observed that the Niagara Power Company retains the control of both the
Land Company and the Junction Railway Company, through the ownership of a ma-
jority of their respective capital stocks, as specially authorized by its charter, and that,
in the case of each corporation, land is furnished by the Power Company for Common
Stock, so that Preferred Stock, issued only for improvements and maintenance, gets the
benefit of large landed interests without money payment therefor.
The above-mentioned Cumulative and Convertible eight per cent. Preferred Stocks
are now, by arrangement with the Railway Company and Land Company, offered at par
385
NIAGARA POWER
to the present Subscribers, under the Agreement of January 17, 1890, to the aggregate
amount of
$480,000, or 4,800 shares of the Niagara Development Company,
$120,000, or 1,200 shares of the Niagara Junction Railway Company, being at the
rate of
$1,200, or 12 shares of the Land Company, and
$300, or 3 shares of the Junction Railway Company,
$1,500, or 15 shares in all, for each
share of Capital Stock of the Cataract Construction Company owned by the Subscribers
to said agreement.
That is, each Subscriber is entitled for each share of Cataract Stock held by him to
subscribe for $1,500 of the two Preferred Stocks.
Subscriptions for either or both of such stocks at par will be received at this office
until 3 p. m., Friday, July 15, 1892, and will be payable in cash installments as above
stated. A cheque for ten per cent, must accompany each subscription.
All shares not subscribed for as above will be disposed of by the Board of Directors
as they may deem for the best interests of the respective companies, preference being
given to applications from stockholders for amounts in addition to their pro rata
allotments.
With reference to this contingency Subscribers are invited to indicate how much
stock of either Company they may desire in case more than their respective proportions
shall remain open for allotment.
A copy of the certificate of each corporation is herewith inclosed, showing the exact
status of each corporation and its Preferred Stock.
No commissions or allowances of any kind are made or paid to anyone on account
of these subscriptions, the intervention of the Cataract Construction Company being
solely on account of its great interest in the property and development of the Niagara
Falls Power Company and its attendant enterprises.
By order of the Board of Directors,
THE CATARACT CONSTRUCTION COMPANY.
by
EDWARD D. ADAMS, President.
WILLIAM B. RANKINE, Secretary.
386
Circular No. 65.
OFFICE OF
THE NIAGARA FALLS POWER COMPANY
BOARD OF DIRECTORS.
EDWARD D. ADAMS.
D. O. MILLS.
JOHN JACOB ASTOR
VICTOR MORAWETZ.
GEORGE S. BOWDOIN
DANIEL O DAY.
CHARLES F. CLARK.
WILLIAM B. RANKINE.
CHARLES LANIER.
FRANCIS LYNDE STETSON.
JOSEPH LAROCQUE.
FREDERICK W. WHITRIDGE.
EDWARD A. WICKES.
Room 29, Eighth Floor, Mills Building,
New York, June 16, 1903.
To the Holders of the Preferred Stock of
Niagara Junction Railway Company, and of
Niagara Development Company; and
To the Holders of Scrip of
Niagara Development Company:
The Stockholders of The Niagara Falls Power Company at their annual meeting on
the 2nd inst. instructed the Board of Directors to offer in behalf of that Company to
purchase from the holders thereof
(1) Any and all of the Preferred Stock of Niagara Junction Railway Company in
the amount of $140,000 at par and accrued interest at six per cent, per
annum from the date of its issue, January 1, 1893.
(2) Any and all of the outstanding Preferred Stock of Niagara Development
Company in the amount of $421,200 at par and accrued interest at the
rate of six per cent, per annum from the date of its issue, January 1, 1899.
(3) Any and all of the non-interest bearing scrip of Niagara Development Com-
pany outstanding in the amount of $113,4<98.24< at par; payments to be
made for such stocks and scrip in stock of The Niagara Falls Power Com-
pany at par.
Pursuant to such authority, and by instructions of the Board of Directors, The
Niagara Falls Power Company now offers on the terms stated above to purchase and to
pay for any and all of the stock and scrip above described. You are invited to indicate
upon the enclosed blank, to be returned to this office, your willingness or unwillingness to
accept such offer which will be open until September 1, 1903, all purchases being made
as of July 1, 1903, and interest being computed to that date. If you accept the offer
please enclose with your acceptance your certificates duly endorsed for transfer to
The Niagara Falls Power Company for which suitable receipts will be delivered ex-
changeable into the stock of The Niagara Falls Power Company when increased and
issued by order of the Stockholders.
387
NIAGARA POWER
Adjustments will be made in respect of the fractions and sums under $100 in the total
amount of stock of The Niagara Falls Power Company to which you may be entitled,
the Company having made arrangement so that fractional amounts under $100 of that
stock may be sold to you at par or purchased from you at 98.
In the event of the acceptance of this offer by the holders of more than two-thirds of
such stocks and scrip, a special meeting of the stockholders of The Niagara Falls Power
Company will be called to authorize an increase in the present issue of its stock in an
amount sufficient to enable that Company to deliver stock in exchange for the temporary
receipts above described.
By Order of the Board of Directors,
THE NIAGARA FALLS POWER COMPANY,
By
William B. Rankine,
Treasurer.
388
CIRCULAR No. 84.
THE NIAGARA FALLS POWER COMPANY
Niagara Falls, N. Y.
15 Broad Street,
New York City, March 1, 1918.
To the Stockholders of
The Niagara Falls Power Company :
The following report and certified financial statements for the year 1917 are respect-
fully submitted by the Board of Directors :
The Niagara Falls Power Company has been permitted since January 19, 1917, to
divert water sufficient to operate its plant at full capacity, thus increasing its power
output approximately 15,000 horse-power above the limits of restrictions imposed by
the Federal Government ever since the enactment of the Burton Law in June, 1906,
except for certain short periods of special relief.
Permits for the additional diversion were issued by the Secretary of War under
authority of Joint Resolutions of Congress approved respectively January 19, and
June 30, 1917. The resolution of January 19, limits the generation and use of Niagara
power to the capacities of apparatus installed and in use at that date ; Congress intend-
ing thereby to prevent additional uses of Niagara power during the life of the resolution
and until further legislation by it.
The permit, and the authority of the Secretary of War to grant like permits, will
expire with June 30, next, unless meantime Congress shall take further action, it being
expressly provided in the resolutions that a diversion of any water from the Niagara
River after June 30, 1918, in excess of the limitations of the expired Burton Law shall
be a misdemeanor punishable by heavy penalties.
The resolution of June 30, 1917, authorizes and directs the Secretary of War to
make a "comprehensive and thorough investigation" of "the entire subject of water
diversion from the Great Lakes and the Niagara River, including navigation, sanitary
and power purposes and the preservation of the scenic beauty of Niagara Falls and the
Rapids of the Niagara River, and to report to Congress thereon at the earliest
practicable date," and appropriates $25,000 for that purpose.
The Cline bill mentioned in last year's annual report as then pending in Congress
was agreed to by the House of Representatives February 8, 1917, but failed to be
considered in the Senate.
By an order signed by the Secretary of War under date of December 28, 1917,
the President of the United States requisitioned until further notice the total quantity
and output of electrical power produced or capable of being produced by this Company
as well as that delivered to it in the United States from Canada. The order provides
that it must be given precedence over any and all orders theretofore placed with this
Company. The order is depriving some of this Company's customers of power heretofore
delivered them under contracts of long standing and for long terms, increasing the
supply to others whose products the Federal administration considers more essential to
the successful conduct of the war.
389
NIAGARA POWER
This Company is endeavoring in every way to co-operate with the United States War
Department to make Niagara power of the greatest possible service toward winning
the war.
That there is insufficient power at Niagara to supply present requirements is due
largely, if not wholly, to the continued unwillingness of Congress since the question of
Federal control of Niagara diversion was first raised in 1906 to enact permanent pro-
vision for the subject and to fix the status and the rights of the companies which had
constructed expensive plants pursuant to authority of the State of New York and had
been lawfully operating for many years before their rights were questioned.
During all that time this Company has stood ready upon any reasonable permanent
settlement of its rights at least to complete its original undertaking. This would have
substantially doubled the present output of the American plant with little, if any,
diversion of water above the amount now in use by it under the existing temporary
permit.
In response to enquiries of the War Department made in 1913 this Company stated
in a letter to the Chief of Engineers that
"no one can be more desirous of meeting any increased demand for power
than will be The Niagara Falls Power Company, the pioneer in the production
of hydro-electric energy for industrial use . . . whose enterprise preceded
any demand for electrical power and antedated any and all legal compli-
cations. . . .
"Preliminary estimates indicate the possibility of supplementing the present
works of The Niagara Falls Power Company so as to utilize to the utmost
practicable extent, between its intake and outlet, the potentiality of the waters
by it diverted from the river. . . . To this end, however, an absolutely
essential prerequisite would be the approval of the Federal Government of the
right to use the water permanently, or for an adequate period, and under
conditions promising a fair return."
Later in replying to further enquiries of the War Department, in 1916 when the
prices of the required material and labor had advanced approximately 50 per cent.,
this Company further stated in a letter to Major H. Burgess of the U. S. Lake Survey,
dated September 30, 1916,
"Subject to confirmation by the Federal Government of our rights for the
necessary water diversion for such a term and upon such conditions as will
render it practicable to raise the required money, we shall be ready and would
like to undertake the work as soon as the present abnormal conditions of the
labor and material markets are adjusted to a basis that will permit the
project to be carried out with due regard to economic considerations."
A statement in some detail was made in last year's annual report in respect of the
indispensability of the products of Niagara power. Increases in the demand for those
products have been brought about by the war in which this nation is engaged. The
Federal authorities now have recognized the fact that the amount of Niagara power
available is wholly inadequate for use in the production of sufficient quantities of the
articles required to supply the nation's needs and at the same time to supply ordinary
business requirements.
390
APPENDIX
Throughout the year the demands on both companies for power were far in excess
of the capacity of the plants. Practically a power famine now exists at Niagara. It is
confidently believed that double the present output of all the existing plants Avould soon
be absorbed for at least the duration of the war.
The tenth unit in the plant of the Canadian Niagara Power Company was completed
and placed in commercial service in January, 1917. The generating installation of that
Company is now in excess of 100,000 horse-power. Its present head works, power house
and tunnel are adequate for the installation of another large generating unit. The
Ontario Government, however, now claims that the present rights of the Canadian
Company are limited to the production of 100,000 horse-power. In this view we are
unable to concur.
Increases in production and sales by your Companies resulted in substantial in-
creases in gross revenues. The increases were more than offset by greater operating
costs and by large increases in taxes. It also was considered proper to appropriate
from surplus a substantial reserve against certain contingent liabilities, consisting in
the main of possible further requirements under constructions which may be placed
on recent War and Excess Profits Tax laws.
Among recent increases in operating costs is the expense of protecting both the
American and Canadian plants against lawlessness. Military and also private guards
are stationed at the Canadian plant and private armed guards at the American plant.
A protective enclosure has been built about the American plant.
In the annual report for the year ended December 31, 1913, the opinion was expressed
that this Company's "normal function generally should be the production of power
for industrial uses and its transmission in large amounts for distribution by others."
At that time the Board had negotiated, subject to consent of the stockkholders of this
Company, the sale of the majority shares of the Cataract Power and Conduit Company,
which distributed in Buffalo Niagara power purchased of this Company. The holders
of more than 81 per cent, of this Company's shares filed their written approvals of the
sale. Following the policy then enunciated, the stock of the Tonawanda Power Company
(2,500 shares of a par value of $100 each) was sold to a group in which were included
Directors Rankine, DeGraff and Smith, who, however, took no part in the proceedings
for the sale, in August last at $175 per share in cash, aggregating $437,500. The
amount of $220,500 thereof, being the avails of 1,260 shares that had been pledged as
collateral under the mortgages securing this Company's funded indebtedness, was
deposited in trust with Central Trust Company of New York in substitution for the
stock theretofore so pledged. Subject to that lien a further pledge thereof was made to
Bankers Trust Company as Trustee under the mortgage securing the Refunding and
General Mortgage bonds of this Company, due January 1, 1932, in substitution for the
like second lien to which that stock had been subjected under date of October 1, 1909.
The balance of $217,000, being the proceeds of 1,240 shares, was paid into the treasury
of the Company. As shown by the Treasurer's statement, the transaction resulted in a
large profit to this Company.
The interest in the Tonawanda Company thus sold was subject to bonds to the
amount of $150,000, secured by a mortgage on that Company's plant and properties.
The sale was made subject also to an amended power contract pursuant to which the
391
NIAGARA POWER
Tonawanda Company will purchase power from this Company for and during the term
of this Company's corporate life.
By resolutions of the Board of Directors, the Central Trust Company of New York
was requested to subscribe for $1,500,000 of the United States First Liberty Loan
3!/2 per cent, bonds, and later for $500,000 of the Second Liberty Loan 4 per cent,
bonds, to be held by it as Trustee as an investment of trust funds in its hands resulting
from the sales of properties under the lien of the mortgage securing the 5 per cent.
First Mortgage bonds of this Company due January 1, 1932. Allotments of $450,000
of the 3!/> per cents, and $300,000 of the 4 per cents, were made and the $750,000
bonds are now held by Central Trust Company, as Trustee under said mortgage.
In addition to the subscriptions placed through the Central Trust Company of
New York, this Company subscribed direct for $500,000 and was allotted $300,000
of the 10-25 year 4 per cent, convertible gold bonds (Second Liberty Loan of 1917).
These are now held in the treasury of the Company.
The Canadian Niagara Power Company also subscribed for and was allotted
$250,000 514 per cent, bonds due December 1, 1922, of Canada's Victory Loan.
Mr. Edward A. Wickes, who at the organization of The Cataract Construction
Company in February, 1890, became its First Vice-President and a member of its
Board and Executive Committee, and on June 6, 1899, was made First Vice-President
and on February 1, 1910, President of this Company, resigned as President on Jul}' 10,
1917, urging that he had reached the age limit. As a member of the Board of Directors,
Mr. Wickes continues his lively interest and active participation in the management
of the affairs of the Company.
Mr. Stacy C. Richmond, a member of the Board of Directors since December 9, 1914,
was elected President to fill the unexpired term of Mr. Wickes.
The Board of Directors had hoped to incorporate in this report a short history of
this Company's power development at Niagara to bring to j-our attention the state of
the art of electric power production and use at the beginning of this enterprise and the
part taken by your Company in its development. In collecting the necessary data it has
been found that more time will be required than was at first anticipated, and accordingly,
it has been determined to send the historical sketch to stockholders at a later date.
By order of the Board of Directors.
STACY C. RICHMOND
President.
Frederick L. Lovelace,
Secretary.
392
APPENDIX E
INTERNATIONAL XI AGAR A COMMISSION
Invitation by The Cataract Construction Company,
June 25, 1890, to Submit Engineering Projects for
Consideration by the Commission
Report April 13, 1891, of Projects Submitted
and Prizes and Premiums Awarded
LETTER OF INVITATION
June 25, 1890
See Chapter X, Page 183, for Introduction and Conclusion
************
The purpose of this Company, in organising this Commission, has been to ascertain
the best system for this enterprise, and to have the questions involved considered by the
highest available scientific authorities.
The following conditions of the proposed Competition have been settled with due
regard to the customs prevailing in each country intended to be represented, so that
no national prejudices need be raised.
In order to place all foreign competitors upon an equal basis with Americans, both
for the Competition and the execution of the plans, it is proposed : —
1. That £75 should be allowed for travelling expenses to such of the foreign
competitors as may desire to make a personal examination at Niagara Falls,
prior to Saturday, September 6th, 1890, the close of the Competition; due
notice of such intention to make such examination to be given in advance of
departure to the Secretary of the Commission.
2. (a.) That a commission of two and one-half per cent (2l/o^) on the cost of
manufacturing machinery be paid to the author of projects adopted, in case
no guarantee of performance be given, or superintendence of construction and
installation required.
(b.) This commission will be increased to five per cent (5^) in lieu of manu-
facturers' profits, in case the Company finds it advantageous to have
machinery constructed in America, from working drawings purchased from
the foreign authors, who offer to construct with proper guarantee of
performance.
The projects and the communications to the Commission, as well as its proceedings
and reports, to be in the English language.
The dimensions of plans and all calculations to be expressed in English measures and
the financial statements in dollars at the rate of five francs per one dollar and five dollars
per pound sterling.
The projects to be filed with the Secretary of the Commission in London on or before
Saturday, September 6th, 1890, excepting those from America, which may be deposited
on or before Friday, August 29th, 1890, with the Treasurer of the Company in New
York, who will bring the same to London. No projects will be received after these dates
to compete for the prizes offered.
The Commission is authorised to award the following prizes for the projects which
it may consider the best adapted to the ends of this particular enterprise, taking into
consideration economy of expenditure, convenience of arrangement for progressive
enlargement, mechanical results from separate parts, final results per horse-power
transmitted, and guarantees of performance.
395
NIAGARA POWER
(a) Hydraulic projects for the primary development of power by turbines or
other water motors.
1st Prize £200. 2nd Prize £150.
(b) Projects for the transmission and distribution of power from the primary (a)*.
1st Prize £200. 2nd Prize £150.
(c) Projects combining both development and transmission (a) and (b) combined.
1st Prize £600. 2nd Prize £500.
The Commission is authorised to award two first prizes of £000 each in case two
projects are found to be of equal merit.
There will be paid to each party submitting separate plans of sufficient importance
and accejating and compl}'ing with all the conditions of the Competition : —
1. £100 to each party submitting one or more projects of (a) and (b).
2. £200 to each party or associated parties submitting projects (c).
The right is reserved to the Commission to withhold all prizes and compensation if
in their judgment the projects are undeserving of the same.
All projects are to become the property of the Company, but there shall be no
obligation upon the ComjDany to adopt an}' particular one, and it shall have the right
to adopt a part of any or all projects. In case any project or part thereof shall be
adopted, the Compairy shall give the author thereof due credit for the same and pay for
the necessary working drawings, and shall pay in addition, pursuant to a contract to
be arranged therefor, the commission aforesaid upon the net cost of all machinery con-
structed by others than the authors of the projects, or part thereof adopted.
All questions that may arise under this Competition shall be subject to the absolute
and final decision of the Commission, without recourse, but no claim will be considered
after October 1st, 1890.
The Competitors are required to submit in six copies : — **
1. Plans sufficiently detailed to permit an opinion to be formed by the Commission
regarding the character of the construction proposed. All the special devices
for security and regularity, electric, hydraulic, etc., must be shown by
separate and descriptive drawings in detail.
2. Explanatory text, giving full information as to the methods proposed, time
required for preparation of working drawings, and the manufacture of
machinery, and installation of project, results expected, performance to be
guaranteed, commercial values, and with references in detail to similar in-
stallations already constructed, if any, as evidence of practicability and
economy.
3. Estimates of cost of furnishing working drawings prepared in feet and inches,
for manufacture in America, of all machinery excej)t pieces requiring special
treatment by experienced hands. Such drawings, if demanded, to be made in
* Competitors who submit projects (b) for transmission and distribution only, should calculate upon
a speed of 200 to 250 revolutions per minute on the shafts of the primary development (a).
** Five of these plans may be submitted in blue-print.
396
APPENDIX
accordance with American shop practice as to sizes, according to full infor-
mation to be given by the Engineers of this Company.
4. Estimates of cost of machinery and all accessories with details thereof, delivered
free on board at a port of regular and convenient shipment for New York
or Niagara Falls.
The estimates of cost of rock and other excavation may be made at : —
$0.25 (f 1.25) per c. yd. (0.7645 c. meter) for open earth cut.
$1.50 (f 7.50) per c. yd. (0.7645 c. meter) for open rock cut.
$4.00 (f 20.00) per c. yd. (0.7645 c. meter) for tunnels or other rock excavations
in bulk, wholly underground, and at
$5.00 (f 25.00) per c. yd. (0.7645 c. meter) for minor underground rock ex-
cavation by heading only.
The assumed cost of materials and labour for temporary and permanent construction
of all kinds, not mentioned above, should be stated, in order that an equitable comparison
may be made. .
The estimates of cost to the Company, per horse-power produced at the point of
consumption by the methods proposed, may be made upon the assumption that the
Company will have expended in the completion of its tunnel, 8,000 feet in length, etc.,
the sum of $4,000,000. Each Competitor should add to this sum whatever he may
estimate to be the additional cost of his projects.
In calculating the commercial results per horse-power produced, transmitted, and
distributed by the proposed project, allowance should be made for depreciation and for
the service of installation, and in addition five per cent, interest upon the total cost,
including the aforesaid sum of $4,000,000.
In considering these questions it may be assumed that there is : —
1. Unlimited and never-failing water, with a comparatively small amount of
sediment.
2. Constant net fall or head of 140 feet (42.67 meters).
3. A tail race or tunnel, 8,000 feet (2,438.32 meters) long with a section of 490
square feet (45.54 square meters) and 18.148 cubic yards (13.874 cubic
meters) per linear foot (.3048 meter) without lining, with a grade not ex-
ceeding 7 per 1,000 and exclusive of any excavations for wheels or water inlets.
4. Level and vacant land and low river banks readily available for the erection
of manufactories, with access thereto by water and rail.
5. About 10 feet (3.047 meters) of soil overlaying horizontal strata of rocks, all
sufficiently hard to permit the excavation of chambers and shafts, wheel
pits, tunnels, etc.
Projects are invited for one Central Station, located at the head of the tunnel, for: —
1. The economical development of as much power as the section of the tunnel, the
head of water, and the hydraulic slope will permit, and —
397
NIAGARA POWER
2. Transmission and distribution of this power overhead or underground by
electricity, compressed air, water, cable or other means to : —
(a) A manufacturing district to be built up within a radius of four miles
(6.44 kilometers), and
(fo) To the city of Buffalo, distant about twenty miles (32.18 kilometers).
The Central Station should be so designed :■ —
1. That a combination of methods of transmission and distribution may be em-
ployed according to the probable demand therefore by various classes of
industries.
2. That a block of 50,000 horse-power may be specially designed for the Buffalo
transmission, and
3. That the entire capacity of the tunnel may be developed gradually in blocks of
from 10,000 to 20,000 horse-power each.
The methods of transmission and distribution should be those best suited to large
manufacturing cities requiring —
1. Electricity for domestic, street and manufacturing purposes.
2. Water for power, domestic, fire and manufacturing uses, and
3. Air for power, ventilating and refrigerating.
Opportunity will be given to all Competitors to appear before the Commission to give
personal explanation of their projects.
It is believed that all necessary details for a correct understanding of this matter will
be found in the photographs, maps and plans transmitted you herewith.
************
LIST OF DOCUMENTS
ACCOMPANYING INVITATION TO INTERNATIONAL NIAGARA COMPETITION
JUNE 25, 1890
1. Map of Great Lakes with text explanatory of drainage area and volume of water.
2. Map of country within a 20-mile radius of Niagara Falls, showing towns, popula-
tion, etc.
3. Lake Erie Coast Chart, showing depth and routes of water from Buffalo to
Niagara Falls.
4. War Department Survey, showing topography around Niagara Falls.
5. Colored Map of Niagara Falls showing State Reservation, lines of railway and
shore line filling permitted on river edge of the company's property.
6. Photograph of perspective view of the falls and town of Niagara.
398
APPENDIX
LIST OF DOCUMENTS Continued
7. Photograph of cliff with location of tunnel mouth.
8. Photograph of company's property viewed from Canadian side.
9. Blue-print, showing location of tunnel and property owned by the company.
10. Blue-print, profile, showing location of tunnel.
11. Sketch, showing Niagara group of rocks, section of tunnel and details of fall.
12. Map of Buffalo and head of Niagara River.
13. Memorandum regarding city of Buffalo.
399
REPORT
ON THE
PROJECTS
SUBMITTED TO
THE INTERNATIONAL NIAGARA
COMMISSION
PROF. W. C. UNWIN, F.R.S.
1891
The Cataract Construction Company having asked for a
report on the plans submitted to the Commission, the Secretary
has prepared the following statement. The Commission having sepa-
rated, it is not possible to have an official report carrying the
authority of the Commission. The general conclusions of the
Commission have been communicated to the Cataract Company in
the Report of Proceedings, and that report is confidential between
the Commission and the Company.
W. Cawthorne Unwix.
Prof. E. Mascart, the Commissioner from France, wrote from
Paris to the Secretary, June 29, 1891 :
I have just received and have read with great interest the
remarkable Report prepared by Professor Unwin on the compe-
tition in regard to Niagara. This Report reproduces a very faith-
ful image of the discussions which took place in the Commission.
E. Mascart
Directeur
Bureau Central Meteorologique
A group portrait of the International Niagara Com-
mission will be found in Chapter X, page 180, and
separate portraits of each commissioner are intro-
duced in appropriate places in this volume. Prof. W.
Cawthorne Unwin is the only survivor of this group
at the date of publication and his reflections upon
his connection with this enterprise will be found in
Chapter XXVIII, Volume Two, "Reviews."
REPORT ON THE PROJECTS
SUBMITTED TO
THE INTERNATIONAL NIAGARA COMMISSION.
PROF. W. C. UNWIN, F.R.S.
PART I.
The Niagara River at Niagara Falls has long been recognized as capable of furnish-
ing an enormous amount of mechanical energy and as having peculiar advantages for
the development of water-power. Flowing from a great chain of lakes, which form
reservoirs to a water-shed covering an area of more than 240,000 square miles, the
Niagara River has an almost unvarying discharge, estimated at 265,000 cubic feet
per second. The drop at the Falls, which creates the means of applying hydraulic
machinery, is 150 feet, and this with the fall in the rapids above and immediately below
the Falls gives a total head of 214 feet for driving hydraulic motors within a distance not
greater than a mile and a quarter. The variation during the year of surface level of the
river is very small either above or below the Falls, and is chiefly due to the action of
wind. The ordinary changes of level do not exceed 1 foot in the river above the Falls
or 5 feet below the Falls. The greatest authenticated changes of level below the Falls,
due to iceblocks in the river and other causes, amount to only 13l/> feet rise above mean
level and 9 feet fall below it. The land on the United States side is almost a level plain,
suitable for mill sites and for the construction of head-race channels. The river, turning
at right angles immediately below the Falls, facilitates the construction of a tail-race
tunnel. The rock strata of shale and limestone are strong and trustworthy for tunneling.
The Cataract Construction Company has been organized to carry out a scheme for
utilizing and distributing a part of the mechanical power available at the Falls. They
have purchased a tract of about 1,400 acres, which at its nearest point is about iy±
miles above the Falls. A vertical shaft is being driven at this point nearly to the level
of the lower river. Starting from the bottom of this shaft and debouching into the lower
river a tunnel about 18 feet wide, 30 feet high, and of 490 square feet sectional area, with
a slope of 4 per 1,000, is already in progress beneath the present town of Niagara.
This tunnel is to serve as a tail-race to the hydraulic machinery for utilizing the water-
power. It is estimated to be capable of discharging with a velocity of perhaps 28 feet per
second as much water as would be used by hydraulic machines developing 125,000
effective horse-power. Large and commercially valuable as this enormous power would
be, it is probably little more than 3 per cent, of the power running to waste over the
Falls, and its abstraction will probably not visibly affect their appearance.
At a distance of 18 miles from the tract purchased by the Cataract Company is the
important city of Buffalo, and at a less distance the active manufacturing town of
Tonawanda. It is contemplated in the project of the Cataract Company to transmit
part of the power utilized to Buffalo and Tonawanda, where, provided it can be rented
at a suitable price, it would replace the steam-power at present employed.
Given the conditions thus briefly indicated, two classes of problems press for solution :
(l)As to the best method or methods of developing the power in a form available for
application; (2) As to the method or methods of distributing the power partly to the
new industrial center near the Falls, which, adopting a suggestion of Prof. Forbes, may
403
NIAGARA POWER
be termed Cataract City, and partly to the more distant towns of Buffalo and Tona-
wanda. Means of utilizing water-power and means of distributing power are well under-
stood by engineers. But the magnitude of the undertaking at Niagara is quite
unprecedented, and its success must depend on the application of the highest scientific
knowledge and the widest practical experience in the selection of the methods which are
at once the most trustworthy and the least costly. It is a governing condition of the
problem that the power should be utilized and distributed at a cost permitting its sale
at a price which leaves to steam-power no chance of competition. On the other hand,
economy cannot in this case be purchased by the adoption of untried or doubtful expedi-
ents, and exceptional care must be taken to avoid risk of accident or failure in the
supply. If once a manufacturing district is created to apply the power of Niagara, it
will become absolutely dependent for its existence on the motors and distributing ar-
rangements, and the effect of a temporary cessation of supply of power would be
disastrous.
Nowhere in the world has water-power been so extensively used in manufacturing
operations as in the United States. Already, ten years ago, the census returns showed
that more than a million horse-power derived from waterfalls were utilized for manu-
facturing purposes in the United States. Hence it might appear at first sight that all
that is required at Niagara is an application on a larger scale of plans already adopted
in other localities. In earlier projects for utilizing Niagara this was indeed assumed to be
the case. But consideration showed that not only in the dimensions of the machinery and
in the magnitude of the power to be handled, the work to be accomplished at Niagara
differs essentially from that executed in other localities. Elsewhere, the water-power
available is insufficient or only just sufficient for the demand. Generally, it is sup-
plemented by steam-power. Then it is of primary importance that the useful work
recovered from the waterfall, under varying conditions of season and fluctuation of
trade requirements, should be as great as possible. The efficiency of the hydraulic motors
must be high, whether worked at full power or not. But at Niagara the supply of
power is practically limitless. The efficienc}' of the motors is only so far important as it
reduces the cost of the installation of the motors and their adjuncts. In the transmission
also waste of power is to be measured against the cost of the means of preventing it.
A further consideration is this, that, looking to the magnitude of the power to be
distributed, the complexity of a system on which many consumers are dependent, and the
distance of transmission, there is a probability that the best methods of dealing with the
problem are quite different from those already tried in places where these conditions
do not exist.
With a very few exceptions, hitherto, where a large water-power has had to be dis-
tributed to several consumers, the water itself has been distributed, each consumer having
his own hydraulic machinery for utilizing it. In the case of Niagara, the great area
which would be occupied by surface canals if this method were adopted, and the great
expense of underground excavation in a table-land of rock like that on the American
shore of the Falls, would certainly make the cost of the power considerable and would
perhaps prohibit its utilization at all. In a very few cases, chiefly in Switzerland, another
method has been adopted. The water-power developed on motors, at the most convenient
site, is distributed as power to the consumers. Further, in consequence of quite recent
developments of mechanical science, steam-power is now, in some cases, distributed to
404
REPORT NIAGARA COMMISSION
considerable distances by means of compressed air and electricity. The economy of the
production of power at a central station, in these cases, more than counterbalances the
cost of the distributing apparatus. In the case of water-power, there is the further
advantage that not only is the development of the power on a large scale at a single
station cheaper than its development at a number of distant points, but also the cost
of air mains or electric conductors may be less than that of the water channels necessary
for distributing the water.
If, at Niagara, the simple and well-understood methods of distributing water to
consumers, to be utilized by machinery of their own, are to be replaced by methods of
distributing power, then the problem at once assumes a character of much greater
complexity and novelty. In the distribution of power, by electricity especially, ex-
perience is so limited and recent that wide divergences of opinion exist, even on funda-
mental points, as to the best methods to adopt. During a visit to Europe, in the spring
of 1890, the president of the Cataract Company came to the conclusion that it was
desirable to bring to bear, on the solution of the problem of utilizing Niagara, the
knowledge and experience of many different engineers. It was decided to invite selected
engineers or engineering firms to seriously consider the problem, and to send in com-
pletely worked-out projects, with drawings and estimates of cost. To secure a careful
and impartial examination and discussion of these projects the International Niagara
Commission was formed. A sum of about £4,500 was placed in the hands of the Com-
mission to be awarded, pax-tly in premiums to all invited engineers who sent in plans of
sufficient importance, partly in prizes to the plans of greatest merit.
The Commission was constituted as follows :
Sir WILLIAM THOMSON, LL. D., F. R. S., President.
Dr. COLEMAN SELLERS, M. I. C. E., Professor of Engineering Practice, Stevens
Institute of Technology, Hoboken, N. J.; Professor of Mechanics, Franklin
Institute of State of Pennsylvania.
E. MASCART, Membre de VInstitut, Paris; Professor at the College of France;
Director of the Bureau Central Mcteorologique.
Col. THEODORE TURRETTINI, Geneva, President of the City of Geneva; Director
of the Works for the Utilization of the Rhone; Director of the Socicte d' In-
struments de Physique.
Prof. W. C. UNWIN, F. R. S., Mem. Inst. C. E., Secretary.
It was arranged that engineers deputed by the Cataract Company should be present
at meetings of the Commission.
Preliminary meetings of the Commission were held in London on June 21, 23 and 24,
1890. At these meetings a letter of invitation was drawn up and a list of engineers
agreed on to whom the letter of invitation to compete should be sent.
The following are the more important directions laid down in the letter of invitation
to competitors, which it is desirable to refer to as an explanation of the action of the
Commission.
The purpose of the Company in organizing the Commission was stated to be to
ascertain the best system for the enterprise at Niagara and to have the questions
involved considered by the highest available scientific authorities.
405
NIAGARA POWER
To place foreign competitors on an equal footing with American competitors, a series
of maps, plans, sections and photographs of the locality were prepared and sent with the
letter of invitation. It was also arranged that traveling expenses should be allowed to
such of the foreign competitors as should desire to make a personal examination at
Niagara Falls. Two competitors availed themselves of this arrangement for visiting
the Falls and consulting the Company's engineers.
The communications to the Commission were to be made in English, and the dimensions
on plans and calculations to be expressed in English measures.
The Commission was authorized to award the following prizes for the projects which
it considered best adapted to the ends of this particular enterprise. Taking into con-
sideration economy of expenditure, convenience of arrangement for progressive enlarge-
ment, mechanical results from separate parts, final results per horse-power transmitted,
and guarantees of performance :
(a) Hydraulic projects for the primary development of power by turbines or other
water motors. ^ £2QQ . 2d f ^
(b) Projects for the transmission and distribution of power from the primary.
1st Prize, £200; 2d Prize, £150.
(c) Projects combining both development and transmission — (a) and (b) combined.
1st Prize, £600; 2d Prize, £500.
In addition to this the Commission was authorized to pay to each party submitting
separate plans of sufficient imj)ortance, and accepting and complying with the conditions
of the competition :
1. £100 to each party submitting one or more projects of (a) and (b).
2. £200 to each party or associated parties submitting projects (c).
Right was reserved to the Commission to withhold all prizes and compensation if in
their judgment the projects were undeserving of the same.
The competitors were required to submit in six copies :
1. Plans sufficiently detailed to permit an opinion to be formed by the Commission
regarding the character of the construction proposed. All the special devices for security
and regularity, electric, hydraulic, etc., must be shown by separate and descriptive
drawings in detail.
2. Explanatory text, giving full information as to the methods proposed, time
required for preparation of working drawings and the manufacture of machinery and
installation of project, results expected, performance to be guaranteed, commercial
values, and with reference in detail to similar installations already constructed, if any,
as evidence of practicability and economy.
3. Estimates of cost of furnishing working drawings for manufacture in America of
all machinery except pieces requiring special treatment by experienced hands.
4. Estimates of cost of machinery and all accessories, with details thereof, delivered
f. o. b. at a port of regular and convenient shipment for New York or Niagara Falls.
406
REPORT NIAGARA COMMISSION
The estimates of cost to the Company per horse-power, produced at the point of
consumption by the methods proposed, should be made on the assumption that the
Company will have expended in the completion of its tunnel, 8,000 feet in length, etc.,
the sum of $4,000,000 ; every competitor should add to this sum whatever he might
estimate to be the additional cost of his projects.
In calculating the commercial results per horse-power produced, transmitted and
distributed by the proposed project, allowance should be made for depreciation and for
the service of installation, and in addition 5 per cent, interest on the total cost, including
the aforesaid sum of $4,000,000.
As to the data on which competitors were required to base their projects, they were
directed to assume an unlimited and unfailing supply of water without sediment and a
net fall of 140 feet.
Projects were invited for one central station, located at the head of the tunnel, for
1. The development of as much power as the section of the tunnel (490 square feet),
the head of water and the hydraulic slope would permit.
2. The transmission and distribution of this power overhead or underground by
electricity, compressed air, water, cable or other means to
(a) A manufacturing district built up within a radius of four miles.
(b) To the city of Buffalo, distant about twenty miles.
The central station should be so designed
1. That a combination of methods of transmission and distribution might be employed
according to the probable demand therefor by various classes of industries.
2. That a block of 50,000 horse-power might be specially assigned to the Buffalo
transmission.
3. That the entire capacity of the tunnel might be developed gradually in blocks of
from 10,000 to 20,000 horse-power each.
Lastly, it was directed that, in selecting the methods adopted, attention should be
given to the requirements of manufacturing cities, of electricity for domestic, street and
manufacturing purposes ; water for power, domestic, fire and manufacturing purposes,
and air for power, ventilating and refrigerating.
It was arranged that opportunity should be given to all competitors to appear before
the Commission to give personal explanation of their projects.
It was at first arranged that the projects should be delivered to the Commission on
September 6, 1890. The period allowed for the preparation of projects proved, however,
to be insufficient, and the time for sending in projects was extended to the end of the
year. Immediately on their receipt, copies of the projects were sent to each Commissioner
for consideration.
The Commission met on January 29 for the examination of the projects, conference
with the competitors and adjudication of the awards. Meetings of considerable duration
were held on January 29, 30, 31, and on February 2, 3 and 4. Messrs. Clemens Herschel
and Albert H. Porter, of the Engineers to the Cataract Company, came from the
United States to attend the meetings of the Commission.
407
NIAGARA POWER
The projects received were probably as numerous as could be expected, and many of
them were worked out with quite extraordinary care and completeness. In some cases
the Descriptive Memoir alone formed an extensive treatise and contained information of
the greatest scientific value. Amongst the projects received there was the greatest variety
in the proposals both for developing and transmitting the power. As to the transmission
of the power especially, it may be noted that every method known to be available for the
transmission of large power to great distances was put forward for adoption in one or
more of the designs received. If no project commended itself to the Commission as
completely fulfilling all the conditions required, or as suitable for execution without
modification, that must be attributed in part to the magnitude and complexity of the
problem, and in part also to this further cause.
Several of the competitors proposed to distribute the power electrically, but as to this
means of distribution wide differences of opinion still exist. The kind of current used,
the potential, the mode of regulation, and the mode of insulation of the conductors,
differ greatly in existing installations for electrical distribution. It is not yet known
what is the practical limit of size of dynamos, and the increase of size involves scientific
questions of difficulty. No doubt exists as to the possibility of distributing even so large a
power as that at Niagara electrically, but there is room for considerable divergence of
opinion as to the methods which are most advantageous and involve least difficulty and
inconvenience.
The following is a summary of the projects received by the Commission:
1. Messrs. Cuenod, Sautter & Co., of Geneva, and Messrs. Faesch & Piccard, of
Geneva.
Project A. — Complete plans of hydraulic plant for 125,000 horse-power, and of
dynamos and electrical distributing arrangements, both for Cataract City and Buffalo.
In this project, turbines of 2,500 horse-power drive pairs of dynamos of 1,250 horse-
power in underground galleries without intermediate gearing. Full details are given of
water channels, turbines, dynamos, switch-boards, cut-outs and regulating and safety
apparatus.
Project B. — Similar complete plans for turbines and electrical distribution, the
dynamos being placed above-ground. The turbines are of 2,500 horse-power, with a
vertical shaft driving a dynamo of the same power directly without gearing. The plan
of distribution is different from that in the preceding project, and a higher potential
is adopted in the distribution circuits.
2. Professor Vigkeux and M. Leon Levy, of Paris.
Complete plans for 125,000 horse-power. Details of turbines of different types for
5,000 and 10,000 horse-power each. Details of lvydraulic governor and sluice gates.
Electric arrangements for working sluices. Dynamos of 2,500 horse-power, and 5,000
volts. Power lubricating arrangements, traveling-cranes and ventilating fan. Design
of receiving station and dynamo motors. Details of aerial electric conductors.
3. M. Hillairet and M. Bouvier, of Paris.
Complete plans for hydraulic machines and electrical distribution. Turbines of
10,000 horse-power, driving d}Tnamos of the same power directly, the dynamos being
408
REPORT NIAGARA COMMISSION
above-ground and the turbines having vertical shafts. Turbines for actuating regulating
sluices of principal turbines. Details of dynamos. Details of dynamo transformers.
Details of transmission to Buffalo. Plan of distribution in a quarter of the new indus-
trial district. Details of conductors for Buffalo.
4. Professor Riedler, of Berlin, and M. Victor Popp, of Paris.
Plans of hydraulic machines and air compressors, studied chiefly with respect to
transmission of power by compressed air to Buffalo. Details of turbines with horizontal
and vertical axis of 5,000 horse-power on the impulse system. Details of outward-flow
turbines of 5,000 horse-power. Project I. — Turbines with horizontal axis and under-
ground compressors. Project II. — A similar arrangement with outward-flow turbines at
somewhat higher speed, and compressors with slide-valves. Project III. — Pressure
turbines with vertical shaft driving overground compressors, compressors compound
effecting compression in two stages. Project IV.- — A similar arrangement with impulse
turbines. Study of distributing mains for initial air pressures of 86 pounds, 199 pounds
and 426 pounds per square inch. Details of experiments on the Paris mains.
5. Mr. G. F. Deacon and Messrs. Siemens Brothers, of London.
Complete project for utilizing 125,000 horse-power and its distribution electrically.
Inward-flow turbines of 2,500 horse-power, each driving one series-wound dynamo.
Dynamos placed in underground galleries. Supply pipes of turbines fed by 5 vertical
rock shafts, 12 turbines to each shaft. Dynamos with ring armatures, 400 amperes at
4,500 volts. Conductors, insulated cables laid underground. For electric lighting and
small motors, potential lowered by motor dynamo transformer. Messrs. Siemens' project
differs from all the other electrical projects in proposing to use constant current and
vary the speed and potential of the dynamos.
6. Mr. H. D. Pearsall, of Orpington, England.
This is a plan for the utilization of 125,000 horse-power by the compression of air
in a series of cylinders by the direct action of the water column. The engines are a
modification of the water ram, compressing and discharging alternately. The com-
pressing cylinders or engines, 63 in number, are placed in three tiers in an immense
open excavation, each tier using one-third of the fall. The air is compressed to 150
pounds per square inch ; each compressing engine is reckoned to give about 2,000
horse-power. A supply of water under pressure is also obtained from the compressing
cylinders, amounting to about 150 gallons per horse-power. This would be used for the
water supply of the city.
7. Professor Lupton, of Leeds, and Mr. Sturgeon, of Chester, England.
This is a complete arrangement for hydraulic motors and compressed air plant to
utilize 125,000 horse-power, and transmit it both to Cataract City and Buffalo. The
turbines are inward-flow turbines of 5,000 horse-power each, with vertical axis placed
at the bottom of a rock shaft, which serves also as a supply pipe. The water pressure
acts below the wheel to support the weight of turbine and shaft. Vertical single-acting air
compressors are placed nearly at the ground surface, and are worked from a horizontal
shaft driven from the turbine shaft by steel bevel wheels. The air is compressed
409
NIAGARA POWER
to atmospheres. An air main 10 feet in diameter at Niagara, decreasing to 7 feet
at Buffalo, is proposed, with a branch 3-foot main to Tonawanda. The main is laid
in a trench, and it is proposed to construct a tramway, worked by compressed air,
over it.
Some details of a scheme of electric lighting are given. At Niagara the dynamos of
500 horse-power, at 2,500 volts (alternate current), would be driven by 1,100 horse-
power turbines. At Buffalo the dynamos would be driven by compressed-air motors.
Details of head-race canals, sluices, turbines, compressors and air mains are given.
A map with proposed distribution of air mains. Also details of the proposed electric
stations and turbines.
8. Messrs. Ganz & Co., of Budapest, Hungary.
This is a project for turbines and electric distribution, the latter not fully worked
out, for the whole amount of power proposed. Details are given of impulse turbines of
5,000 horse-power each, having vertical shafts to which dynamos are directly attached
above-ground. The water is supplied to turbines by a rock shaft. The weight of turbine
shaft and armature is supported by a very carefully designed arrangement of suspension
bearing, which has been used in similar cases with success. The turbines are regulated by
relay governors, and details of hydraulic pressure, pumps and accumulators for working
the sluices are given.
For the electrical distribution, alternate current dynamos, 336 amperes, 10,000 volts
are proposed. The exciting current is obtained from special continuous current dynamos
of 336 amperes at 200 volts. Regulating arrangements by resistances and equalizer
are described. The main to Buffalo is proposed to consist of 12 uncovered cables on
iron standards 50 meters apart. At Buffalo a station with induction transformers lower-
ing the potential to 2,000 volts. It is proposed to use alternate current motors.
9. Messrs. Escher, Wyss & Co., of Zurich, Switzerland.
This is the hydraulic part only of a project for electrical distribution, with some
details of a compressed-air plant for part of the power. Details are given of pressure or
re-action turbines of 400, 2,500, 5,000 and 10,000 horse-power. For the compressed-air
plant a turbine of 2,500 horse-power is proposed, with vertical shaft driving four com-
pressors by mortice-bevel gearing. The turbine is regulated by a relay governor acting
on a cylindrical sluice on the suction-pipe. The weight of shaft is balanced by water
pressure acting on a piston.
For the electrical distribution of 5,000 horse-power turbines are proposed, with
vertical shafts. The turbines are really double turbines, so placed that the upward
pressure on one balances the downward pressure on the other, with a surplus to sustain
part of the weight of shaft. The dynamos are attached directly to the top of the
vertical shaft.
A second project is given for electrical distribution, in which 12 shafts convey Avater
to pairs of turbines of 10,000 horse-power, together with horizontal shafts coupled
directly to a pair of 5,000 horse-power dynamos. A special central shaft accommodates
four 400 horse-power and four 100 horse-power turbines, driving pressure pumps and
ventilating arrangements. Relay governors control the turbines.
410
REPORT NIAGARA COMMISSION
10. Messrs. J. J. Rieter & Co., of Winterthur, Switzerland. Three projects are given.
Project A. Consists of a group of four pressure or re-action turbines of 2,000 horse-
power each, for telodynamic or wire-rope transmission. The turbines have vertical
shafts with pivot and hydraulic support. They drive the rope pulleys by bevel gearing.
Details of intermediate wire-rope station and terminal station for 1,000 horse-power
are given.
Project B. Is a design of a group of four pressure or re-action turbines of 2,500
horse-power, with horizontal shafts, arranged to drive dynamos, pumps or air-com-
pressors in underground galleries. There is one water shaft to the group of four
turbines and a service shaft for access.
Project C. Is a design for a group of two pressure or re-action turbines of 5,000
horse-power each, with horizontal shafts.
11. Professor Vigreux and M. Leon Feray, of Paris.
This is a design for a group of turbines driving pressure pumps for hydraulic distri-
bution of power. A group of outward-flow turbines of 10,000 horse-power drives the
pressure pumps. Details are given of the regulating, safety and controlling arrange-
ments for the water-pressure system and designs of types of receiving turbines driven b}*
the pressure water.
12. The Pelton Water Wheel Company, of San Francisco, California.
Design of a block of 20,000 horse-power distributed thus : a 4,000 horse-power Pelton
wheel driving service pumps ; a 4,000 horse-power Pelton wheel driving power pumps
for a system of hydraulic distribution ; a 4,000 horse-power Pelton wheel driving air
compressors ; 4 Pelton wheels of 2,000 horse-power each for driving Ferranti dynamos.
Details are given of an hydraulic arrangement for working the sluices of a multiple
nozzle Pelton wheel, controlled by a governor.
13. Professor G. Forbes, of London.
This is a project for the electrical part only of a system of electrical distribution.
The dynamos are alternate current, working at 500 horse-power and 2,000 volts. They
have horizontal axes and are placed in subterranean galleries. The electricity is dis-
tributed to Cataract City at 2,000 volts, and the larger motors are intended to be
synchronizing alternate current motors of the Mordey type, working at that tension.
For Buffalo the potential is raised by transformers of 100 horse-power each to 10,000
volts. At Buffalo part of the current may be used for large motors at the full potential.
Part is transformed down to 2,000 volts and distributed. A low tension continuous
current for lighting and small motors may be obtained by dynamo ti-ansformers.
For Cataract City it is proposed that insulated aerial cables should be used. For
transmission to Buffalo, bare copper insulated on porcelain and oil, carried on timber
trestles.
14. The Norwalk Iron Works Company, South Norwalk, Conn., U. S. A.
This is a project for distributing power by compressed air, the compressors being
placed underground and driven by Pelton wheels. The compressors are inverted, vertical,
411
NIAGARA POWER
tandem, two stage or compound compressors with Corliss valves and sprav injection.
Each compressor is 2,500 horse-power, working at 55 revolutions per minute, and
compressing 10 atmospheres. Eor Buffalo five groups of four compressors each are
used. Two Pelton wheels drive the group of four compressors coupled directly without
gearing. The air main to Buffalo would be 40 inches diameter and the pressure in
Buffalo 80 pounds per square inch.
A plan is also suggested for supplying air to Cataract City at 34 pounds pressure
by one set of compressors, while a second set taking the air at this pressure would further
compress it so as to give a pressure of 80 pounds per square inch in Buffalo.
Some other projects were received, but the Commission considered that either they did
not comply with the terms of the letter of invitation or they were of insufficient complete-
ness and importance to permit them to be classed as projects complying with the
conditions.
412
PART II.
DETAILED ABSTRACT OF THE PROJECTS
The history of the origin of the Commission having been given, and a brief statement
of its success so far that is indicated by the number of projects received, a somewhat
more detailed account of the more important projects may now be attempted. It should,
however, be premised that, partly from the haste of preparation, partly no doubt in the
case of some European competitors from difficulties of translation into English of
memoirs written initially in French, there are a few discrepancies and ambiguities in the
papers laid before the Commission Avhich make it difficult to be quite clear as to the
meaning intended.
I. Project of Messrs. Citexod, Sautter & Co., of Geneva, and Messrs. Faesch &
Piccard, of Geneva.
These two firms, acting in association, produced two complete projects of similar
character for the hydraulic utilization of 125,000 horse-power, and its distribution
electrically both to Cataract City and Buffalo. The general features of both projects
are the adoption of Girard, or impulse turbines, with complete admission and back
vanes, permitting the use of suction pipes, so that the fall below the turbines is not
wasted; a unit of power of 2,500 horses for each turbine, as the maximum size which it
is practically prudent to construct, and as capable of convenient arrangement to give
the speed of rotation most suitable for the dynamos ; in the electrical distribution, the
adoption of continuous currents at constant potential, on the ground that that method
has proved in practice safe, easy and simple. The method of continuous currents is
preferred as being simpler, exacting less apparatus, and permitting the attainment
of a high efficiency. The method of constant potential is preferred to constant current,
because on the latter plan the intensity of current would be too great for one circuit,
and several circuits would involve complication.
In the consideration of the problem of electrical distribution the most fundamental
question is the maximum difference of potential which is practically permissible, because
the higher the potential the less in general will be the cost of distribution. With regard
to this Messrs. Cuenod & Sautter have assumed that a difference of potential of 10,000
volts between the conductors and earth is not too great to be safely encountered. The
machines can be adequately insulated by porcelain and oil, and the attendants can be
protected by platforms insulated on porcelain and provided with indian-rubber carpets.
But in the construction of high potential, continuous-current dynamo machines and
motors greater difficulties occur, and here they limit the difference of potential at the
terminals to 5,000 volts. They assume that for a rate of work exceeding 50 horse-power
motors can be used with a current at 4,500 volts ; smaller motors they would limit to
500 volts. As to the next most important question, the greatest power of a single dynamo
machine, they have adopted 1,250 horse-power in one project and 2,500 horse-power in
the other.
Messrs. Cuenod & Sautter appear first to have designed the arrangement having
turbines with horizontal shafts driving dynamos in underground galleries placed a little
above the tail-water level. Subsequently they appear to have become dissatisfied with
this solution of the problem, and to have designed the arrangement of tui'bines with
vertical shafts and dynamos above-ground.
413
NIAGARA POWER
They pointed out to the Commission that, while from the hydraulic and mechanical
point of view the horizontal arrangement was excellent, they had come to doubt whether
the rock was solid enough for the construction of such underground galleries as their
plan required. These galleries were about 308 feet in length, 79 feet in width and 49 feet
in height. Consequently they greatly preferred the arrangement with vertical shafts
and dynamos above-ground. In this conclusion the Commission fully concurred.
Messrs. Cuenod & Sautter gave, as the reason for preference of the vertical arrange-
ment, merely the doubt as to the stability of the rock galleries. But it is possible that
the greater simplicity of the electrical arrangements for distribution, in the second
project, had also some weight in the decision.
Messrs. Cuenod & Sautter adopt multipolar dynamos, though, at first sight, it might
be alleged that bipolar machines would be less complicated, have less loss from hysteresis,
require less expenditure of current in excitation, and waste less in Foucault currents.
As to hysteresis, they urge that though in multipolar machines the number of cycles
is increased, the mass of iron in motion is diminished, while the cooling surface is greater,
ventilation more perfect, and speed of rotation less. The importance of the Foucault
currents is diminished because the moving mass of copper is much less than in bipolar
machines, and it can be sub-divided without seriously increasing internal resistance.
As to the current for excitation, it is so small as to be of little consequence. Two types
of dynamos are given. One of 1,250 horse-power, with a horizontal axis, is a Gramme
ring machine of great diameter, provided with a double field of ten poles, arranged
so that internal and external poles are utilized. The part of the conductor on the
lateral faces consists of plates insulated by air and forming a ventilator. The machine
virtually consists of five bipolar machines, each of 250 horse-power — a very ad-
vantageous size for a bipolar machine.
The second type of dynamo with vertical axis is of 2,500 horse-power. The mean
velocity of the armature is 126 feet per second. This is, in their opinion, too great a
speed to permit the use of magnetic masses, transmitting the lines of force in the ordinary
way, and an ordinary armature would also have been too heavy.
A lower speed Avould have been unsuitable for the turbines. Hence a special type of
armature was designed which they consider to have these advantages : the hysteresis and
Foucault currents are diminished ; the lines of force traverse the mass radially so that
their density is decreased ; the thickness is reduced to that necessary for strength and
mechanical solidity ; the mass of iron is diminished to one-fourth or one-fifth of that in
an armature of ordinary construction ; the iron plays only the part of a mechanical
support for the winding, destitute of appreciable magnetic resistance; the winding
adopted permits a great reduction of the exterior wire subject to centrifugal force ; the
commutator is of the same diameter as the ring, an arrangement which, though costly,
permits perfect regulation of the brushes and avoidance of sparking; the regulation
of the brushes is effected automatically.
For the regulation of the machines generally, and particularly to secure a constant
e. m. f., the following means are adopted: (1) There are relay governors of an extremely
excellent type controlling the speed of the turbines. (2) Fly-wheels are placed on each
dynamo shaft, the inertia of which, added to that of the armature, moderates the rate
of change of speed and gives the turbine governors time to effect an adjustment.
(3) There are automatic electric regulators effecting, through greatly subdivided
414
REPORT NIAGARA COMMISSION
resistances, a regulation of the exciting currents of the field magnets. The control of
the e. m. f. is effected by these regulators quite independently of any supervision by the
staff of attendants. In case of failure of these automatic regulators, there would still
be no great variation of e. m. f., because the dynamos have little internal resistance,
the resistance of the external circuit is small, the fluctuation of speed is moderated by the
fly-wheels, and the turbine governors act promptly.
For conductors aerial lines are advocated, placed at such an elevation as to clear
houses and trees. Where aerial lines are impossible culverts are recommended, the in-
sulation still depending on porcelain and air. Subterranean insulated cables are, in the
opinion of Messrs. Cuenod, Sautter & Co., too costly.
Project A. Hydraulic Machines. In this design there are 55 turbines, each of 2,500
horse-power, in 5 groups. Each turbine drives 2 dynamos, the turbine shaft and dynamo
shaft being connected by Raffard couplings, which are both elastic and insulating. The
turbines are impulse turbines, but by a well-known modification they are capable of
working as pressure turbines also, and consequently suction pipes can be applied to
utilize the head below the turbine house floor.
The head-race channel has five branches, one to each turbine chamber, and is
furnished with surface screen, movable dam or sluice to each branch grating, and electric
automatic balanced sluices, which in case of accident can be closed from the galleries
below. Each of the five turbine galleries is in communication with the surface by a wide
service shaft, with staircase and lift, traveling-crane, warming and ventilating ap-
paratus. The electric automatic sluices would shut off water from the chamber in case
of accident, and besides this there is a butterfly valve worked by pressure water (300
pounds per square inch) provided for working also the relay turbine governors. A shaft
in the floor to the tail-race, covered by a balanced platform which opens under a
pressure of 6 inches of head, serves to discharge from the chamber any water entering if
an accident occurs. The turbine shaft bearings are self-lubricating, and act also as
thrust bearings. The turbines run at 180 revolutions and are provided with two fly-
wheels. The total cost of excavations, tail-race tunnel, turbines, accessories, interest,
depreciation and maintenance, is estimated to be $6.10 per effective horse-power de-
livered to dynamos.
Electrical Arrangements. There are 100 dynamos, each of 1,250 horse-power, at 180
revolutions per minute, and 10 reserve dynamos. For the new Cataract City, three
galleries with 60 dynamos coupled in series in pairs, so as to give a total resultant e. m. f .
between the extreme conductors of 3,000 volts, are allotted. The distribution to Cataract
City is in two circuits of 1,000 volts for the larger motor and two circuits of 500 volts
for the smaller motors, electric lighting, tramways, etc.
Each turbine of 2,500 horse-power drives 2 dynamos coupled in series, giving 1,650
amperes at 1,060 volts. Hence the 20 dynamos in each gallery give 16,500 amperes at
1,060 volts. Each series of 10 dynamos is coupled in tension with an intermediate or
neutral conductor. Two galleries feed the two 1,000 volt circuits. In the central
gallery of the three, this neutral conductor is prolonged to form the two 500 volt circuits.
The neutral conductor is connected to earth. Hence the greatest difference of
potential of any part of the system and the earth cannot exceed 1,500 volts, while the
extreme difference of potential between two cii-cuits is 3,000 volts. The distribution
network, which is proposed to be carried on high masts, with oil insulation, is estimated
415
NIAGARA POWER
to require 1,000 tons of copper. From the large section of the conductor the spans
may reach 200 yards.
Of the whole energy of the turbines 5 per cent, is reckoned as the loss in the primary
dynamo generators, 5 per cent, in the circuits, 5 to 15 per cent, in the motors. The
average efficiency is then about 80 per cent.
Taking the proportion of the excavation and hydraulic machinery, adding the cost
of electric plant and allowing for interest, depreciation and supervision, the cost per
effective horse-power distributed in Cataract City is estimated at $11.28 per annum.
Buffalo Transmission. The two remaining galleries (allotted to the Buffalo trans-
mission) have dynamos of 1,250 horse-power, giving 544 amperes at 1,600 volts. Ten of
these are coupled in series for each circuit, giving a current of 544 amperes at 16,000
volts. There are four such circuits to Buffalo. Two central stations are arranged for in
Buffalo, in each of which there are two series of motors driving secondary dvnamo
generators, which transform the current down to the potential required for distribution.
The mode of distribution is similar to that in Cataract City — four circuits, two at 1,000
and two at 500 volts, with a neutral wire.
The loss on the primary dynamo generators is reckoned at 5 per cent. ; the loss in
transmission to Buffalo 5.3 per cent. ; 10 per cent, is lost on the dynamo transformers
of the Buffalo secondary station ; adding now 5 per cent, loss for the circuits in Buffalo
and 10 per cent, for the motors, the total loss is 35.3, and the resultant efficiency is
about 62 per cent.
Adding the cost of the proportion of the hydraulic construction involved to the
electrical plan, and allowing for interest, depreciation and supervision, the cost per
effective horse-power distributed in Buffalo is estimated at $20.13 per annum.
Project B. Hydraulic Machinery. The turbines are impulse turbines with suction
pipes and vertical axis. Each turbine is of 2,500 horse-power, at 136 revolutions per
minute. There are 50 turbines for regular work and 6 in reserve, in two parallel groups
of 28 each. The dynamos are above-ground, one on each turbine shaft, in a large
horseshoe building. The head-race enters between the wings forming the sides of the
horseshoe. The lateral channels are grouped in pairs, and are each provided with a
surface screen, grating and sluices. From the lateral canals wrought-iron supply pipes,
67 inches in diameter, lead to the turbines below. Each turbine is thus independent, and
this is, in Messrs. Faesch & Piccard's opinion, of more importance than the economy which
might be obtained by grouping the turbines in pairs or fours with one supply pipe. Four
shafts with staircases and traveling-cranes lead from the dynamo house to the turbine
galleries below. There are traveling-cranes also in the turbine galleries. The vertical
shafts of the turbines are tubular, to reduce weight and to gain stiffness enough to dis-
pense with intermediate journal supports. To carry the weight of the turbine, with its
vertical shaft and fly-wheel (of 12 tons), amounting altogether to a weight of 35 tons,
a cylinder and piston is formed in the turbine case. The water pressure, under a head
of 1051/O feet, acting on the under side of this piston, supports the weight of the turbine
and its attachments. As an additional precaution a collar-thrust bearing is also intro-
duced near the top of the shaft. This has automatic lubrication. Above the fly-wheel is
a Raffard coupling connecting the shaft with the armature of the dynamo. The turbine
can easily be dismounted, if necessary, by the two traveling-cranes. The relay governor
to each turbine is of the same excellent type as that in the horizontal arrangement.
416
REPORT NIAGARA COMMISSION
Messrs. Faesch & Piccard guarantee that with this governor the variations of speed
in ordinary work would not exceed 1 per cent. The sluices for regulating the turbines are
cylindrical sluices on the suction pipes ; a very satisfactory arrangement, because the
sluices are completely balanced with respect to the water pressure. These sluices are
worked by hydraulic pressure under the control of the governors. Small turbines and
pumps, and an accumulator in a special chamber, give the supply of water, under a
pressure of 300 pounds per square inch, for working the regulating sluices.
Electrical Arrangements. The dynamo is arranged with an armature having very
little iron. It revolves between field magnets having contrary poles opposite. The
iron of the armature then only serves as a support for the winding, and reduces the
magnetic resistance in the space between the poles of the field magnets. The winding is
of a special tj'pe, derived from the drum winding, without its inconveniences. There are
twenty-two magnetic circuits, each formed by an exterior field magnet and two interior
half magnets. The lines of force foi-m a simple circuit, crossing the armature twice
radially. The armature can be withdrawn by cranes without disturbing the field
magnets. The commutator has a diameter equal to that of the armature. The dynamo
is insulated by porcelain, oil and insulating cement. The Raffard coupling insulates it
from the shaft. The exciting current of the field magnets is regulated by resistances
controlled by hand or automatically. Each gallery contains 28 dynamos — four of 530
volts, and twenty-four of 4,735 volts. Of the dynamos in each gallery, with the larger
potential, 12 are regulated by hand only — 8 for the Cataract City circuits, and 4 for
the Buffalo circuits are regulated automatically. The dynamos of 530 volts are all
regulated automatically.
Method of Distribution. The distribution is arranged thus : The new industrial center,
or Cataract City, is supplied by five conductors, forming four circuits, two at 2,500
volts, two at 500 volts, and a neutral wh*e which is connected to earth. For Buffalo,
there are two conductors at 4,500 volts, and a neutral wire leading from Niagara Falls
to Buffalo. At Buffalo the distribution circuits are reconstituted by compensating
machines. A gi'oup of compensating machines consists of three machines, capable of
acting as generators or motors, and coupled by Raffard couplings so as to run at the
same speed.
If the current is equally divided amongst the three machines they have no action.
If one circuit is overloaded, the potential falls and the automatic regulator increases the
magnetic field of the machine, so that it acts as a secondary generator, being driven by
the two other machines acting as motors. Thus, in Buffalo two distinct networks of
four conductors are supplied. These give in each network two circuits of 2,500 volts,
one of 500 volts, and a neutral wire.
The efficiency of the generating dynamos is 95 per cent. The loss in the network in
Cataract City is 1.7 per cent. The efficiency of the motors may be taken at 80 per cent.
Hence the resultant efficiency of the system is 84 per cent.
The efficiency in the Buffalo distribution, allowing for the loss in the compensating
groups, is estimated at 79 per cent.
The annual cost is estimated as follows : For Cataract City the cost of the excavations,
tail-race and turbines, allowing for interest, depreciation and supervision, comes to $5.76
per effective horse-power per annum. The electric plant and conductors, with similar
417
NIAGARA POWER
allowance for interest, depreciation and supervision, cost $4.12 per effective horse-
power per annum. Hence, the total cost is $9.88 per effective horse-power distributed
per annum.
For Buffalo the cost comes to $12.70 per effective horse-power distributed per annum.
It should be stated that the project of Messrs. Cuenod, Sautter & Co. and Messrs.
Faesch & Piccard is elaborated with great care. The memoir is carefully reasoned, the
drawings are complete, even as to details. The Commission approved of the hydraulic
arrangements, giving the preference to the vertical arrangement. They noted especially
the excellence of the governor for regulating the turbines, which has proved to be
thoroughly efficient in practice, and the system of using a fly-wheel to moderate the
rate of change of speed and give time for the action of the regulating sluices. On the
other hand, they were not of opinion that a case had been made out for so wide a
departure from well-known and well-tried forms in the dynamo proposed, and they did
not consider that the mode of carrying the conductors of the distribution circuits had
been sufficiently studied.
II. Project of Professor Vigreux and M. Leon Levy, of Paris.
These competitors submitted a very elaborate memoir and very complete portfolio of
drawings. The dynamos proposed being of.2,500 horse-power, the machinery is arranged
in groups of four dynamos, driven by turbines of 10,000 total horse-power.
Hydraulic Machinery. Design A. Group of four axial-flow pressure turbines of
2,500 horse-power each. The turbines have horizontal axes, and are coupled in pairs to
balance the axial water pressure, and driving a dynamo on either side at 300 revolutions.
There are thus altogether four turbines and four dynamos in underground chambers.
The turbines have suction pipes, and their efficiency in ordinary work is reckoned at
70 per cent. A short supply pipe 8' 6" in diameter, leading from a vertical rock shaft,
feeds the group of turbines.
Design B. Group of two inward-flow pressure turbines of 5,000 horse-power each,
with horizontal axis, each turbine driving a dynamo on either side. The other arrange-
ments are similar to those of the axial-flow turbine. The flow being radial, each turbine
can be constructed so that the water pressures are balanced, and the inward-flow
turbine has the advantage of greater steadiness of speed.
Design C. Group of four outward-flow pressure turbines placed opposite in pairs,
but not coupled axially. Efficiency the same and supply arrangements similar to those
in the preceding designs.
For all these systems of turbines, relay governors are provided. An ordinary pendulum
governor acts on the distributing valve of an hydraulic cylinder worked by the pressure
of the head which drives the turbines. The piston is fixed and the cylinder moves under
the action of water admitted by the distributing valve to either end. A rack on the
cylinder, acting on a toothed sector, rotates an ordinary disc or throttle-valve in the
turbine supply-pipe. It may in passing be doubted whether an enormous disc valve of
the kind here shown is really safe, and also that such a valve is far from being a balanced
valve. The force required to move it would be very considerable with the high velocities
which Professor Vigreux and M. Levy allow in the supply-pipes.
For 120,000 horse-power, 12 groups of turbines of either of the types described are
required. Eleven of these are allotted to the production of a high-tension current and
418
REPORT NIAGARA COMMISSION
one to produce a low-tension current for lighting the works, for exciting the field
magnets of the other dynamos and for other subsidiary purposes. Two reserve groups
are also proposed, one for high tension, one for low tension, in case of accident to any
other group.
The head-race has a lateral bay to each of the fourteen vertical water shafts, and this
is provided with strainer and sluices. The sluices consist of a series of butterfly valves
in a vertical frame, and arrangements are provided for working these by hand winches
or by a small electric motor.
Organization of the Works. The works are excavated in the rock, and comprise a
gallery 868 feet in length by 112 feet in width, divided longitudinally into three bays
by two parallel rows of piers. The roof of the gallery is formed by segmental vaulting.
The center bay contains the turbines and shafts to the tail-race, to discharge water if an
accident happens. Each lateral bay contains 28 dynamos. Service shafts, 18 feet in
diameter, with electric lifts, are provided. There are ventilating shafts, and a special
shaft for the electric cables. The ventilating fan is driven by an electric motor, and is
capable of completely changing the air in the galleries in two hours. A tram line circu-
lates round the dynamo galleries, and each gallery is provided with electric traveling-
cranes. Continuous lubrication is provided for by oil pumps, worked by power. The
galleries are nearly the same whichever of the three types of turbine is adopted, but the
inward-flow turbines have the advantage of some economy of cost ; the outward-flow the
advantage that each turbine and dynamo is independent of the others in the group.
The cost of an effective horse-power, obtained on the turbine shaft, allowing interest,
cost of excavation, and machinery, etc., depreciation and supervision, is estimated at
$3 per annum.
The Electrical Arrangements. Continuous current is selected as alone answering the
various requirements of lighting and power, and permitting the use of accumulators.
The highest potential is fixed at 5,000 volts. Greater tensions were actually used in the
Creil experiments, but the tension selected is judged to be safer and more practical by
M. Levy.
The dynamos of the generating station are divided into groups, according to the
different localities to be served, and those of each group coupled in quantity. Anv
dynamo, however, can be placed on any service.
Each group is connected to the district served by virtually a single conductor, with
a return conductor. Thus for Buffalo there may be several cables, but these would be
combined so as to form a single conductor to, and retui'n conductor from, Buffalo. The
advantage is that the conductor can be increased at any time without disturbing any of
the established distributing arrangements.
At the district served the conductor will branch into as many conductors as there are
receiving and transforming stations. The potential being kept constant at the regulating
point from which the conductors branch, each station will be independent, and regulate
itself according to its requirements. A control line of telegraph wire from the regulating
point to the generating station allows the potential to be known, and the generating
dynamos to be regulated as required.
The efficiency of the line to Buffalo is fixed at 85 per cent., so that the potential
at the regulating point in Buffalo would be 4,250 volts. The efficiency of the whole
419
NIAGARA POWER
electric system to Buffalo is estimated at 68.85 per cent, for high-tension currents,
and 62 per cent, if the current is transformed to a low-tension current. For Cataract
City the efficiency would be higher, probably 72 to 76 per cent. The advantage of the
system adopted is, that the operations of distribution are identical with those now
employed for low-tension currents.
Dynamos. These are of 2,500 horse-power, 330 amperes and 5,000 volts. This
moderate power facilities the adjustment of the plant to work in different localities
during the progressive growth of the installation. The machine has two armatures of
the Gramme ring type, because it is difficult to obtain more than 3,000 volts with one
ring. The dynamo is multipolar, with six field magnets, and excited by a separate low-
tension current. The mechanical construction is stated to be simple and easy to execute ;
no cast-iron is used on moving parts, and the machine easily divides for inspection.
Four similar machines, differently wound, are allotted to provide the exciting current
at 500 volts. In connection with the exciting current it is proposed to use accumulators
as an adjunct.
A liquid rheostat is employed to close or open the circuits.
The switchboards and the safety, regulating and other contrivances are fully de-
scribed in M. Levy's memoir.
Primary Distributing Conductors. The distribution to Buffalo is taken as a type
of the methods to be adopted. Insulated cables are rejected as too costly, and as im-
perfectly insuring safety. Naked copper on insulators is selected, carried overhead where
that is possible, and in culverts where necessary. For Buffalo, five bars, each 4.6 square
inches in section, form the outgoing, and a similar number the return line. These are
carried on porcelain insulators. Flexible strips at intervals permit expansion. Culverts
would be of concrete.
For the overhead conductors a novel arrangement is proposed. Four lines of iron-
braced girders of 100 yards span are used, carried on trestles. Each girder acts
both as support and conductor. The girder is equivalent in conductivity to one copper
strip. Three copper strips are placed on it. The successive girders are connected by
arched copper strips, permitting expansion. Each girder end rests on a wood block,
supported by four porcelain insulators. These rest in a cup containing petroleum.
For a short transmission from the generating works overhead insulated cables may
be used.
Receiving Dynamos or Motors. These are similar in construction to the generating
dynamos ; a liquid rheostat is used for making and breaking circuit. A separate exciting
machine, driven by the receiving machine, is used. For starting, the current will be
obtained from accumulators.
Transforming Machines. A receiving machine drives a dynamo at low tension. The
machines are similar, but with different winding. Raffard's coupling is used for powers
not exceeding 200 horse-power. Any mode of distribution may be adopted for the low-
tension current. With good machines in full work the efficiency of a transforming group
may be 80 per cent. In the least favorable case it is 65 per cent.
Another mode of transformation is to charge accumulators in series, and discharge
them separately. M. Levy believes accumulators to be efficient, practical and economical.
420
REPORT NIAGARA COMMISSION
The total cost per effective horse-power distributed, including interest on tunnel,
excavation, hydraulic and electric plant, depreciation and supervision, is estimated at
$23.60 per annum.
The Commission were not generally in favor of the underground position of the
dynamos proposed. Consequently both the turbines and dynamos, with horizontal axes,
should in their view be replaced by a different arrangement. The system of overhead
conductors to Buffalo did not seem to them a desirable one, and they doubted the
advisability of using accumulator batteries to excite the field magnets.
III. Project of M. Hillairet and M. Bouvier, of Paris.
This is a complete project for hydraulic utilization and electrical distribution of
125,000 horse-power, with a very careful memoir and very beautiful and detailed
drawings.
Hydraulic Machines. Thirteen turbines of 10,000 horse-power each are proposed,
each working a single dynamo placed above-ground. The turbines have vertical shafts
driving the dynamos directly. The turbines are impulse turbines with partial admission ;
consequently suction pipes cannot be used, and a portion of the fall below the turbines
is necessarily wasted. They are arranged for the exceptionally low speed of 80 revolu-
tions per minute. For each turbine two vertical shafts are sunk through the rock, one
serving as a supply pipe and the other as a shaft for access and containing the turbine
driving shaft. The head-race is also separated into separate channels, one to each
turbine.
The object is to facilitate progressive development of the power and to secure in-
dependence of each turbine. Strainers and sluices, and somewhat elaborate arrange-
ments for cleaning the strainers and removing the rubbish, are provided. The turbine
shaft is made hollow, with solid steel journals at intervals. The weight is supported on a
pivot partly on an hydraulic piston. The turbine is entirely constructed of steel plates
and wrought iron. The turbine is regulated by a series of small sluices closing suc-
cessively the guide blade channels, a method conducing to efficiency when the turbine
is not working at full power. In the present case that is not a matter of much im-
portance, but no doubt in other respects this mode of regulation has advantages. The
regulating sluices to the guide blades are driven by small special turbines. The shaft
journals are continuously lubricated by oil pumps.
Electrical Arrangements. The dynamos are all identical, and can be disposed to
supply either Buffalo or Cataract City. The dynamos of 10,000 horse-power are placed
above-ground, the excavation being reduced to a minimum, and the plan of subterranean
galleries is rejected. Calculation shows, in M. Hillairet's opinion, that the plan of
turbines with vertical shafts is safe and economical.
The method of distribution is different in Cataract City from that in Buffalo. In
Cataract City the receiving motors are in parallel arc, in Buffalo in series, each taking
the total current. The generating dynamos are in series, a variable number supplying
Buffalo, according to requirement, and a fixed number Cataract City. The receiving
motors transform energy at high potential into energy at a potential convenient for
distribution in a restricted area.
Each dynamo gives a maximum difference of potential at the terminals of 1,000 volts
and an intensity of 7,000 amperes. So large a dynamo could not be constructed witli an
421
NIAGARA POWER
armature having an iron core. But it is possible if the armature circuits are purely
electro-dynamic. The dynamo has 16 field magnets, in four groups of four, constituting
a dynamo of eight poles. The armature consists of vertical laminae disposed as gener-
ators of a cylindrical surface, concentric with the axis of rotation. They are fixed by
insulated bolts to a disc or wheel, and have a velocity of 98 feet per second. Ordinary
materials so placed would be incapable of resisting the centrifugal force, and M.
Hillairet proposes to use aluminum bronze with a density less than three, and which
having to resist a stress not exceeding 5,000 pounds per square inch has an ultimate
strength of 37,000 pounds per square inch. The field magnets are of cast-iron, with
pyramidal pole pieces of wrought-iron, having poles much smaller than the body of the
magnets. There are 32 brushes connected in series, and therefore, each conducting
the total current.
Motor Transformers at Buffalo. M. Hillairet does not consider it prudent or
practical to work private installations at the full potential of the line to Buffalo. Hence
the energy distributed must be transformed to a lower potential. The type of receiving
machine chosen is of 2,000 horse-power taking a current of 7,000 amperes and acting
with a difference of potential of 200 volts at its terminals. The axis is horizontal. The
armature is similar to that described above. The speed, 300 revolutions. There are four
poles or four fields of induction. This motor might drive a low-tension dynamo, but a
simplification is possible. When the induced bars of the armature pass through a polar
interval they are inactive. They are out of circuit for about a quarter of a turn. If
between the four groups of field magnets four other inductors are placed, excited by
the total current, the armature bars will suffer an induction as they pass. By adding
new polar pieces and brushes connected in series a complete circuit is established, in
which an electromotive force is generated which can be utilized for distribution. To
secure constancy of potential a centrifugal governor is used which, acting on a variable
shunt, modifies the field of the primary circuit if the speed varies. Such a solution would
be impossible with ordinary machines with magnetic material in the armature. The
motive and resisting efforts in the motor transformer proposed are confined to the
periphery of the armature and produce no torque on the shaft. It is proposed to make
the field magnets of soft cast-steel, as cast-iron field magnets would have occupied too
much space.
Mains to Buffalo. The conductors are to be copper, in culverts. Four bars are
required for Buffalo, connected in pairs in quantity and forming an outgoing and return
conductor, each of 7% square inches in section. These are carried on porcelain
insulators.
Distribtition in Cataract City. The problem is to supply a large number of motors,
the work of which varies, and which are of comparatively small power. Below 1,000
horse-power the type of dynamo described above is abandoned, and the machines
ordinarily used for continuous currents adopted. For two miles round the generating
station the current would be distributed directly to motors of not less than 25 horse-
power at a tension at the terminals not exceeding 1,000 volts. Between two miles and
four miles the current from two dynamos in series would be distributed to motors of
not less than 50 horse-power with a tension of 2,000 volts at the terminals of the
422
REPORT NIAGARA COMMISSION
distribution. For smaller motors, motor transformers would be established at various
points of 300 horse-power, giving currents of 100 or 200 volts.
The electric mains would be subterranean wherever possible. Aerial distribution would
only be adopted very exceptionally. All distributing centers would be connected
telephonically with the generating station.
The Commission considered that there was much of high merit in the hydraulic part
of M. M. Hillairet & Bouvier's project. But they thought the regulating sluices of the
turbine too complicated and the turbine itself built up of too many pieces. They objected
to the tubular shaft with intermediate solid journals, and considered objectionable the
adoption of a type of turbine with partial admission, and therefore without suction
pipes, involving a loss of head.
The most interesting point in this turbine is its low speed rotation. But they were
of opinion that it should not be supposed that any limitation of absolute or rotational
speed is required on account of electrical conditions. With respect to the peculiar
dynamo adopted they thought that a necessity had not been established for so great a
departure from ordinary types.
IV. Project of M. Victor Popp, of Paris, and Professor A. Riedler, of Berlin.
This is a project for the utilization of the water-power by turbines and its trans-
mission by compressed air. Since the greatest doubt would attach, in such a project, to
the question of the transmission by compressed air to so great a distance as Buffalo, or,
at the least, it is in the proposal to use compressed air for transmission to so great a
distance that past experience is chiefly overstepped, M. Popp and Professor Riedler have
chiefly applied themselves to the explanation of this part of the Niagara problem. It
may be conceded at once that compressed air has this advantage that, supposing it
possible to convey it from Niagara to Buffalo without too great cost or loss, then it
could be used at once in place of steam in existing motors with the minimum of distur-
bance of existing plant. The project is based partly on experience gained in working
the compressed-air plant in Paris, partly on special experiments carried out by Pro-
fessor Riedler.
M. Popp and Professor Riedler insist strenuously on this point — that a compressed-
air scheme of transmission can be based absolutely on experience. Nothing need be new
or untried in the machinery, or even of exceptional dimensions. As to the air main, its
construction involves well-known expedients only, and its efficiency can be estimated
from accurately-observed data. On the other hand, they contend that at present any
electrical scheme of this magnitude must involve large elements of uncertainty, both
as to efficiency and cost.
They claim that their project is in accordance with the following statement :
(1) One effective horse-power at the central station is assumed to compress 380 cubic
feet of air per hour to 120 pounds per square inch (above atmospheric pressure). In
Paris as much as 425 cubic feet per hour have been so compressed per horse-power, even
with imperfect engines.
(2) It is proposed only to use moderate pressures of six or eight atmospheres,
although pressures up to thirty to fifty atmospheres have been practically used.
423
NIAGARA POWER
(3) The estimate of the loss in the Buffalo main is based on data obtained in the
complicated and imperfect mains of Paris, although there are causes of loss in the latter
case which would be absent in the former.
(4) The consumption of air in the engines at Buffalo is assumed to be the same as in
old steam-engines in Paris, and no allowance is made for the economy which would result
from using more perfect appliances.
(5) The cost is estimated on a sound commercial basis.
Turbines and Compressors for 5,000 Horse-power. The most advantageous unit of
power, permitting gradual extension, is taken to be 5,000 horse-power. Underground
compressors permit the simplest arrangement, and are least costly. Compressors above-
ground are more accessible and can be better attended to.
For air compressors, piston speeds up to 1,000 feet per minute are unobjectionable.
But the number of rotations should not much exceed 80 per minute; in air compressors
with slide valves 150 revolutions per minute might be obtained. But to secure trust-
worthiness, M. Popp and Professor Riedler prefer 80 revolutions, both for compressors
and turbines. Each turbine shaft drives a compressor having two low-pressure and one
high-pressure cylinder. Such compressors would be smaller than many existing blowing
engines working at the same pressures.
For projects A and C, turbines of Messrs. Rieter, of Winterthur, are adopted.
The turbines are simple and accessible for repair. They are axial-flow pressure tur-
bines (with suction pipes) of 5,000 horse-power each, arranged with a horizontal shaft
in Project A, and a vertical shaft in Project C; the vertical shaft is hollow, and its
weight is balanced by the pressure on a piston formed in the turbine case. The turbines
are of a diameter less than that for which the efficiency would be greatest. Hence the
efficiency is assumed at 60 per cent. only. Each turbine is controlled by a disc throttle
valve and relay governor.
For Project B an outward-flow pressure turbine, with vertical axis, designed by
Messrs. Nagel & Kaemp, of Hamburg, is adopted. The water enters the turbine below,
and its upward pressure balances weight of turbine and shaft, without any special device.
The turbines are so placed as not to require suction pipes. The same turbines, but with
horizontal axis, are shown driving high-speed compressors.
For supplying water to the turbines vertical rock shafts are proposed, and by
preference one water shaft should supply two turbines. A group of five 5,000 horse-
power turbines is proposed, with two smaller auxiliary turbines of 2,000 horse-power.
The large turbines would not be worked below 3,000 horse-power. The regulation would
thus be more efficient. The small turbines would be regulated automatically by the
pressure in the air main.
Project A. Rieter Turbines, with Horizontal Axis and Underground Compressors
at 80 revolutions. Turbines in pairs in a rock gallery 53 feet wide. Horizontal turbine
shaft prolonged either way to form a three-throw crank shaft driving three compressing
cylinders. The compressors are Riedler compressors with controlled valves.
Project B. Nagel cy Kaemp Turbines, with Underground Compressors at 150
revolutions. The compressors have oscillating slide valves, the suction and delivery
valves separate with positive gearing. M. Popp and Professor Riedler consider Project A
424
REPORT NIAGARA COMMISSION
preferable, the efficiency in Project B not being much greater, the expense not much
less, and the wear and tear more serious.
Project C. Nagel Sf Kaemp Turbines and Overground Compressors at 80 revolu-
tions. Three turbines are supplied from one vertical water shaft. The vertical turbine
shaft is coupled to a two-throw crank shaft. Two compressor cylinders are placed below,
driven from one crank-pin, and another above. The driving is virtually the same as
with three cranks at 120°. A small fly-wheel is used, 8I/0 tons weight.
Project D. A similar arrangement with Rieter turbines.
Air Main to Buffalo. An opinion is expressed, based on Paris experience, that no air
reservoir is required. The pressure of compression is assumed at eight atmospheres,
giving six atmospheres in Buffalo, so that air engines will work under the same con-
ditions as in Paris. Messrs. Popp and Riedler give details of a series of experiments on
the leakage and resistance of the Paris mains, on which they base their calculations of
the size and loss of pressure in the main to Buffalo. They believe that the loss by leakage
may be guaranteed not to exceed 2 per cent. It is not clear what is the length of main to
which this estimate applies. They assume the frictional resistance at 1.2 pounds per
square inch, per mile of main, with a mean velocity of the air of 34 feet per second.
Thus if 25,000 horse-power is transmitted to Buffalo by air compressed at Niagara
to 114 pounds per square inch, giving 88 pounds per square inch at Buffalo, through
two mains, two and one-half feet in diameter, they estimate the loss due to friction at
11 per cent, of the power developed at Niagara.
If 75,000 horse-power is transmitted to Buffalo by air compressed initially to 199
pounds, giving 110 pounds per squai-e inch in Buffalo, they estimate the frictional loss
in the same mains at 183/0 per cent, of the power developed at Niagara. The mains need
only be one-quarter inch thick.
Supposing the same mains increased to three-eighths inch thick, then they estimate
that 125,000 horse-power could be transmitted to Buffalo, the air having an initial
pressure of 285 pounds per square inch, a pressure at Buffalo of 175 pounds per square
inch, and a mean velocity of 55 feet per second. They point out that the amount of
power transmitted could thus be increased from 25,000 to 125,000 horse-power without
alteration of the mains. For the higher pressures, however, a fourth compi-essing
cylinder would have to be added to the compressors.
If a higher pressure is chosen then the cost of installation can be diminished. They
estimate that, with an initial pressure of 426 pounds per square inch at Niagara, and a
double main of only one foot diameter, 25,000 horse-power can be transmitted to Buffalo
with a loss of 200 pounds per square inch. A series of detailed calculations of different
mains are given.
Compressors. In the memoir of M. Popp and Professor Riedler a careful examina-
tion is made of the efficiency of compressors, and the results of experiments on various
compressors at Paris are given. It is well known that in many cases the efficiency
of compressors is low. In some mining installations the waste of work in the compressor
amounts to four-fifths of the energy expended. This loss is chiefly due to useless heating
of the air. Experiments on several of the compressors at Paris showed that the work
wasted amounted to 40 to 100 per cent, of the useful work done ; or to put it in the more
usual way, the ratio of useful work of compression to work expended was only 71 to 50
425
NIAGARA POWER
per cent. The later compressors at Paris have been on the Riedler system, with two-stage
compression and controlled valves. With the compressors previously in use, from 261
to 305 cubic feet of air were compressed to six atmospheres per indicated horse-power
per hour. With the new Riedler compressors 354 to 384 cubic feet were similarly com-
pressed per indicated horse-power per hour.*
Utilization of the Compressed Air. Compressed air may be applied to lifting loads,
forcing liquids, transporting grain or sand. For lifts it may be used acting on a water
column. Air motors are in use in Paris, of power ranging from one-eighth horse-power
to 150 horse-power. The expense of installation of an air motor is about two-thirds of
that of a steam-engine and boiler. All existing engines can be transformed into air
engines almost without alteration, and without interrupting the ordinary service. Old
steam-engines are working in Paris with a consumption of 450 cubic feet of air per
hour, at five atmospheres per effective horse-power.
Taking the efficiency of the compressors to be such that they give 380 cubic feet at
eight atmospheres per effective horse-power per hour, the combined efficiency of com-
pressors and motors is estimated at 85 per cent., every loss from Niagara to Buffalo
included.
By reheating the air before use a further advantage is gained, and it is stated that
the heat so expended is applied five times more efficiently than if used in generating steam.
Cost of an Effective Horse-power in Buffalo. Taking a 25,000 horse-power plant,
and assuming a loss by leakage of 5 per cent., and that 380 cubic feet compressed
require one horse-power at Niagara and 450 cubic feet give one horse-power at Buffalo,
then 25,000 horse-power at Niagara will give 20,000 effective horse-power in Buffalo.
Each horse-power then is estimated to cost $6.50 per annum in Buffalo, or, allowing for
depreciation, $12.05. With a larger transmission the cost per horse-power would be less.
Apparently the estimate above does not include interest on cost of installation. If
5 per cent, is allowed as interest, then the cost per horse-power distributed in Buffalo,
allowing for interest, depreciation and supervision, is $31.25 per annum.
The project of Messrs. Popp and Riedler is very carefully studied. Their claim,
so far as it has anything of novelty, rests chiefly on the assumptions that a much higher
efficiency can be obtained in compressors than has been usual hitherto, and that the
loss in the mains is less than it has generally been estimated. As to the compressors,
there is no doubt that the two-stage compi-ession, with intermediate cooling between
low and high-pressure cylinders does secure a very high efficiency, and the special
controlled valves of Professor Riedler are excellent in diminishing the loss of work due
to ordinary valves and securing perfect quietness of action. As to the loss in the mains,
it should be pointed out that the special researches in Paris are of the highest value as
an addition to the scientific knowledge of air friction. For pressures not exceeding those
in Paris the estimate of the frictional loss cannot be much in error, and, indeed, does not
differ much from an estimate based on earlier experiments. In deducing the friction at
higher pressures, Messi-s. Riedler and Popp have no equally satisfactory experimental
basis, and the friction at these higher pressures will probably be greater than they have
calculated.
* The volumes mentioned throughout this account of Popp and Riedler's project are all reckoned at
atmospheric pressure.
426
REPORT NIAGARA COMMISSION
The Commission greatly approved of the turbines and compressors shown in this
project, though they considered that the efficiency of the turbines, which are not run at
the best speed, would be somewhat less than that assumed. This is not vei'y important
at Niagara. The Commission disapproved of the unlined vertical rock shafts for con-
veying water to the turbines. Of the different arrangements shown, they preferred the
one with vertical axes to the turbines and compressors above-ground.
V. Project of G. F. Deacox, Esq., M. I. C. E., and Messrs. Siemens Brothers & Co.,
of London.
This is a project for the utilization of 125,000 horse-power by turbines, and its
distribution electrically by continuous current, the dynamos being worked at constant
current with varying speed and potential. Dynamos and turbines are underground in
a rock gallery.
Hydraidic Arrangements. The water is conveyed in a surface canal, entering the
canal from the river over a weir. Strainers and a traveling-crane to lift them for clean-
ing are provided. Directly from the bottom of the canal vertical shafts convey water to
a group of turbines of 30,000 horse-power. As the mouths of these shafts are below the
water, they are intended to be closed, when necessary, by a cylindrical floating caisson
gate, or valve. This is of steel, and can be lifted out of the water by a traveling-crane.
The caisson is sunk by admitting water. The rock shafts are twenty feet in diameter,
lined, where necessary, with Portland cement concrete.
From each shaft the water is distributed to a group of twelve turbines. A horizontal
tunnel leads each way from the bottom of the vertical shaft, and twelve iron supply
pipes lead to the turbines.
The turbines are inward-flow pressure turbines, of 2,500 horse-power each, with
horizontal axis and suction pipes. This is a form of turbine having great steadiness
of speed. No regulating apparatus is used in the turbine, as it is considered that
efficiency, except at full power, is of no importance at Niagara. The speed is regulated
by a sluice valve in the supply pipe, running on rollers, which diminishes the effective
head, and, with this, the rate of discharge through the turbine. The turbine wheels are
six feet in diameter, and a speed of 195 revolutions per minute. The turbines and
dynamos are placed in two rock galleries, 780 feet in length, connected by cross
galleries. Two vertical access shafts are provided. The main galleries are fourteen
feet wide and twenty-six feet in height, being very much smaller than in some of the
projects. Each gallery has three electric traveling-cranes. It is suggested that auto-
matic self-closing valves may be used on the supply pipes, to provide against accident.
Electric Arrangements. To each turbine a dynamo is rigidly connected, without any
coupling. The dynamos have ring armatures, and the electromagnet bobbins are
wound in series with the armatures. Each dynamo gives a constant current of 400
amperes, with a potential depending on the speed. At 195 revolutions the potential
would be 4,500 volts. One switchboard is provided for each group of twelve dynamos,
and to the switchboards ten mains are connected. There are appliances to connect any
dynamo to any main; any two dynamos in series to any main; any two or more mains
in series to any one or two dynamos in series. The fifty mains from the five switchboards
are connected to a general switchboard above-ground, from which forty trunk mains
start.
427
NIAGARA POWER
Distributing Mains. These would be placed underground. They consist of one-half
square inch of copper insulated for 9,000 volts.
The mode of working is this: One generator is started with voltage sufficient to
send the full current of 400 amperes through the mains. Its speed is increased as the
resistance increases till it has reached full speed. Then a second generator is started
and run on closed circuit till the current is 400 amperes ; it is then coupled to the trunk
main and its speed increased with the load as before. The highest potential will only be
used when the generators are working at maximum output. There is the same loss in the
mains at all loads, but this is unimportant at Niagara. At full load the efficiency is
greater than with the parallel system. There is no difficulty in constructing motors for
400 amperes. For electric lighting a low tension current at 120 or 130 volts would
be obtained by dynamo motor transformers. These would feed a network of mains in the
usual way.
Calculation shows, in Messrs. Siemens' opinion, that there is a gain of 10 per cent,
of economy in the series system they propose over the parallel system with motor
transformers, when working with full load.
The motors are series wound and worked with constant current. They are regulated
by varying the field by partly short circuiting the electromagnet coils by means of a
centrifugal governor.
Cost and Working Expenses. For Cataract City the cost, including working ex-
penses, depreciation and interest on capital, is estimated at $12.75 per effective horse-
power per annum distributed. For Buffalo the corresponding cost is estimated at $23.05
per horse-power per annum.
The Commission recognized the great originality and practical importance of the
proposal of Messrs. Siemens to work with constant current and varying potential. But
they thought that the method of working on the system of parallel conductors with
approximately constant potential was preferable for many reasons.
VI. Project of Mr. H. D. Pearsall, of Orpington, England.
This is a project for directly using the pressure of the head to compress air, and
includes a general statement of a proposed mode of distribution. The water is ad-
mitted to a series of vertical cylinders, successively compressing the air in them till
it escapes through a series of valves into the mains ; the cylinders then discharge the
water and refill with air. A canal takes the water from the river and culverts, and iron
pipes lead the water to the compressing engines. These are placed on three tiers, each
tier using about one-third of the total head.
The peculiarity of Mr. Pearsall's arrangement is the mechanical control of the valves
by small special air motors. Mr. Pearsall claims, and no doubt rightly, that the water
column and large, wet metal surfaces cool the air very effectively during compression.
Mr. Pearsall allows a maximum velocity of 40 feet per second to the water in the main
entering the compressing cylinder, the main being 5l/> feet in diameter, and he assumes
that the column is brought steadily and without shock to rest by the increasing air
pressure. He calculates the time of one complete stroke at 4.7 seconds. From this he
calculates that each compressing cylinder will compress 13,773 cubic feet of air per
minute, and at the same time deliver 32 cubic feet of water under the same pressure,
which can be used in special mains as a town water supply. Mr. Pearsall calculates
428
REPORT NIAGARA COMMISSION
the mean effective pressure of the air during compression at 37 pounds per square
inch, and the final at 150 pounds per square inch, in which case each engine will work
to 2,224 horse-power, and on an equally theoretical basis he estimates the efficiency
at 73.6 per cent.
The total plant consists of 63 compressing engines for 125,000 horse-power.
The whole of the engines are placed in an enormous pit or open excavation carried
down nearly to the level of the tail-water.
Three mains are proposed connected by cross mains. The air mains to Cataract
City are 2 feet 10 inches in diameter for a mile, diminishing afterwards. The mains
are laid in a trench covered with concrete slabs.
For the pressure water there are two mains 30 inches in diameter, diminishing gradu-
ally to 22 inches.
A Venturi meter, schemed on principles similar to those applied by Mr. Herschel,
is proposed for measuring the air used by motors.
For transmission to Buffalo a loss of pressure of 25 per cent, is allowed. Three
mains of 2 feet 10 inches in diameter are required. For pressure water, which it is
also proposed to carry to Buffalo, two 30-inch mains are required. These mains are to
be laid in filled-up trenches.
Two very small compressing engines of the type proposed have been constructed
and worked. One of these was about 3 horse-power, the other about 5 to 6 horse-power.
A third has recently been constructed of about 10 horse-power.
The Commission thought that it might be useful to experiment with a compressing
engine of this type, but they noted that Mr. Pearsall's project is based throughout
on conjectural estimates of the action of the water and on untried designs of valves
and other auxiliary apparatus.
VII. Project of Professor Ahnold Lupton, of Leeds, and John Sturgeon, Esq.,
of Chester.
This is a complete project for utilizing the power of Niagara by turbines driving
single-acting compressors of the type used in the Birmingham installation. As at
Birmingham, a moderate air pressure is proposed. Cataract Cuy and Buffalo are not
dealt with separately. The air main is designed to carry the whole 125,000 horse-power,
under the idea that factories requiring power would come into existence along the line
of main.
Messrs. Lupton and Sturgeon state at some length the special advantages of an air
transmission scheme. Compressed air can be used in existing ordinary steam-engines,
for driving steam-hammers, or small special domestic motors. It can be applied in
ventilating, exhausting or refrigerating. It can be used for cupolas and furnaces,
the pressure being adjusted by induction nozzles. Air motors may be used for driving
dynamos for electric lighting and for working tram-cars. It can also be used for ware-
house hoists and hotel lifts. The use of compressed air would lead to an abatement
of the smoke nuisance. There is nothing doubtful or experimental about a scheme of
distributing power by compressed air.
Of 120,000 horse-power on the turbine shafts, Messrs. Lupton and Sturgeon estimate
that 70,000, or 58.3 per cent., could be distributed and sold to consumers. If the air
429
NIAGARA POWER
is reheated before use the efficiency is greater. They ascertained that the cost of steam
power at Buffalo ranges from $40 to $150 per horse-power per annum.
At Birmingham manufacturers are willing to pay for compressed air prices equiva-
lent to $40 to $125 per horse-power per year of 2,700 hours.
In Paris the prices are higher. Looking at the price of coal in Buffalo compared
with that in Birmingham, the manufacturers would probably be willing to pay $60 to
$185 per horse-power per year of 2,700 hours.
Now apart from interest on capital, Messrs. Lupton and Sturgeon estimate that
air power can be supplied in Buffalo at $7 per horse-power per annum.
Hydraulic Arrangements. A canal takes the water from the river, provided with ice
fender and sluices which will cut off the water supply entirely if repairs are needed.
Eight branch canals on one side and nine on the other lead to the turbines of the air-
compressors. At the furthest and narrowest end of the canal arrangements are made for
an electric lighting station, driven by turbines. Each branch canal is provided with
Stoney's frictionless sluices, similar to those used on the Manchester canal.
The turbine pits are arranged in blocks of 5,000 horse-power, one inlet from the
main canal serving two blocks, or altogether 10,000 horse-power. Thirty-four turbines
drive the air-compressors and one the electric-lighting plant. The vertical supply
shafts to the turbines are 12 feet diameter.
The turbines are inward-flow pressure turbines. The action of the water on the
turbines being radial, it is a balanced action. Each turbine is of 3,750 effective horse-
power. The wheel is 8 feet diameter and makes 140 revolutions per minute. There are
suction pipes to utilize the fall below the turbines. The water pressure is taken to the
underside of the wheel, which is constructed to form a kind of hydraulic piston, and
this pressure can support a load of 80 tons, more than enough to carry the weight of
turbine and shaft. A cast-iron hollow shaft is proposed. The shaft is to run in bearings
with lignum-vitae steps. A cylindrical regulating sluice can be worked from above-
ground.
Gearing. To drive the horizontal crank shaft of the air-compressors at 80 revolu-
tions from the vertical turbine shaft running at 140 revolutions, steel bevel wheels are
proposed.
Air Compressors. Each turbine drives eight single-acting vertical compressors 43
inches diameter and 48 inches stroke. At full speed each cylinder will deliver 500 cubic
feet of cold air at 5% atmospheres (671/2 pounds per square inch) pressure. The inlet
valves are in the compressing piston and the delivery valves in the cylinder cover. Water
is circulated through the piston and surrounds the compressing cylinder. Spray in-
jection will be used, if found necessary. The compressors are placed in an excavation
just below ground surface. This gives good foundation and permits the supply water
to the turbines to circulate round the compressor cylinders. An engine-house is erected
over the compressors, with a 10-ton traveling-crane. A small special electric plant for
lighting the engine-houses is provided.
Altogether 34 sets of compressing cylinders, 8 cylinders in each, are provided, two
sets being ordinarily held in reserve, or 256 cylinders in all. They are intended to deliver
128,000 cubic feet of cold air at 51/4 atmospheres per minute.
430
REPORT NIAGARA COMMISSION
Air Mains. The air is convej-ed by branch pipes (with stop valves) to a large air
main. Expansion joints are introduced at each junction. The air main increases in
diameter till it reaches 10 feet in diameter. It is proposed to take the air main by
Tonawanda to Buffalo. The diameter will be gradually reduced to 7 feet at Buffalo.
From Hertel Avenue, in Buffalo, there will branch three principal lines of mains through
Buffalo, east, center and west, all united by a main traversing the south of the city from
east to west. Drawings are given showing the proposed construction of these mains.
The main is so designed that with 5!/o atmospheres at Niagara, there will be 5 atmos-
pheres of pressure at Buffalo, giving a working pressure of 60 pounds per square inch.
The question of using a higher pressure has been considered by Messrs. Lupton and
Sturgeon. But on their method of working they doubt if there would be much economy
in the cost of the main, and they attach importance to the storage capacity provided
by the large main.
It is proposed to construct a tram road, worked by compressed air, over the line of
main to Buffalo.
The main would be provided with Stoney roller sluices at every half mile.
Meters of the type used at Birmingham would be employed to measure the air to
consumers.
Electric Lighting Arrangements. Messrs. Lupton and Sturgeon do not see any
large field for electric lighting at Niagara. They have, therefore, provided only for
30,000 16-candle power lamps. The dynamos would be worked by four 1,100 horse-
power turbines, one being in reserve. Each turbine works two dynamos of 500 horse-
power. The dynamos are alternators at 2,500 volts. Transformers will be used where
necessary.
Beyond Cataract City, Messrs. Lupton and Sturgeon think it preferable to drive
dynamos by compressed-air motors, and not to supply the electricity from a central
station at Niagara. In Buffalo they think that 24,000 horse-power might be thus
employed in electric lighting. They would distribute the electricity from four or five
generating stations at 2,500 volts, transforming to a convenient potential at the
consumers' premises. Or a low tension system might be used with a larger number of
stations. One principal reason for preferring to generate electricity by compressed-air
motors at Buffalo is this : Only in winter will much light be required before 6 p. m.
By generating the electricity at Buffalo, the cost of canals, turbines, electric plant and
conductors is saved. The facility of working numerous generating stations by com-
pressed air is so great that Messrs. Lupton and Sturgeon incline to think that a safe
and simple low tension system would be preferable to a high tension one, except, perhaps,
at Cataract City.
The Commission thought the construction of the turbines, in this project, somewhat
too complicated, and they objected to the use of the same vertical shaft for conveying
water to the turbines and for the shaft of the turbine itself. They did not think the
arguments for the use of single-acting compressors valid, and believed that is was in
consequence of the inefficiency of the form of compressor adopted that Messrs. Lupton
and Sturgeon had been driven to use so exceptionally large a main for transmission
of the compressed air.
431
NIAGARA POWER
VIII. Project of Messrs. Ganz & Co., of Budapest.
This is a scheme for utilizing the power by partial-flow impulse turbines of 5,000
horse-power each. These have vertical axes directly coupled to dynamos of the same
power, placed above-ground. The electrical part of the scheme is not fully worked out.
Turbines of less than 5,000 horse-power Messrs. Ganz do not consider practical,
because the cost of the hydraulic arrangements becomes too great. They are satisfied
that turbines as large as this can be constructed in a trustworthy manner. Rejecting
the plan of placing the dynamos underground, no plan of transmitting the power to
the ground surface appeared to them to be possible except that of a simple vertical
shaft. The armature of the dynamo is fixed on this shaft, which augments the vertical
load to be carried. But a special type of bearing which Messrs. Ganz have adopted
completely meets this difficulty.
The head-race is provided with twelve sluices, but as these can only be opened or
closed slowly a cylindrical sluice is only used immediately over each turbine supply
shaft. The supply shaft is a vertical rock shaft lined with concrete. The turbines are a
kind of partial-flow impulse turbine which, however, at full power, work as pressure
turbines, without much loss of efficiency. Hence the fall below the turbines can be
partly utilized. The vertical shaft is a solid steel shaft, running at 125 revolutions.
The weight of turbine, shaft and armature is estimated at 125 tons. This is suspended
from a very ingenious form of bearing, which has been used for similar cases with
perfect success. It is really a kind of collar bearing, with an arrangement for pumping
oil between the supporting surfaces, so as to convert it into a fluid bearing. An hydraulic
piston is also placed in the tail-race below the bottom of the shaft. A timber sluice,
worked by lvydraulic-pressure cylinder, is placed on the tail-race, so that access may
be gained to the parts below the turbine. The regulating sluices of the guide passages of
the turbine are worked by hydraulic cylinders. A centrifugal governor controls the
action of these regulating sluices.
Electrical Arrangements. Alternate current (Zippernowsky) dynamos are pro-
posed, working at 336 amperes at a potential of 10,000 volts. Inside the armature frame
rotates the field magnet. There are 2,500 complete periods per minute. The exciting
current is taken from a separate continuous-current exciter driven by bevel wheels from
the turbine shaft. The exciting current is 335 amperes at 200 volts.
The motors in the central station for driving the pressure pumps, cranes, etc., are
continuous-current motors supplied from one of the exciting machines.
It is proposed to have twelve large alternating generators, ten for ordinary use and
two in reserve. For coupling one machine in parallel to others already working starting
resistances are used. For regulating the exciting current resistances are used which for
large differences of potential are adjusted by hand, but for small differences by an
automatic equalizer.
Primary Conductors. These pass by Tonawanda to a distributing station in Buffalo.
They consist of two sets of twelve uncovered cables, one for outgoing and one for
return. The total section is 1,848 square mm., which gives 25 per cent, loss in the
electric main ; the conductors are carried on iron supports 50 meters apart. Insulators
on wood cross-bars are used. The standards also carry the wire of a telephone circuit.
432
REPORT NIAGARA COMMISSION
Buffalo Distributing Station. Reaching Buffalo at 8,000 volts, the current is trans-
formed to 12,800 amperes at 2,000 volts. A list of motors of 3 to 80 horse-power is
given, having a commercial efficiency of 75 per cent, in the smaller to 90 per cent, in
the larger sizes. The speed of the motor depends on the frequency of the alternations
and is independent of the load. The smaller sizes require a lower potential and have
special transformers. The larger sizes can take the current at 2,000 volts. The
turbines shown in the drawings of this project are of a very satisfactory type, and the
general arrangement of the hydraulic machinery is excellent. The extensive and suc-
cessful experience of Messrs. Ganz & Co. with alternate current dynamos of high
potential gives importance to their proposals for the distribution of the power, but
details of the electrical part of their project are not fully described.
IX. Project of Messrs. Escher, Wyss & Co., of Zurich, Switzerland.
This is the hydraulic part only of a project for utilizing the power by turbines and
distributing it electrically.
The electrical part was to have been added by the Maschinenfabrik Oerlikon. Owing
to unavoidable circumstances the electrical part could not be supplied in time, and
only a sketch of the electrical arrangements which would have been proposed is given.
It may be taken, however, that the hydraulic arrangements of Messrs. Escher, Wyss &
Co. have been so arranged in consultation that they would have been perfectly suitable
for driving such electrical machinery as the Oerlikon Company considered suitable for
the Niagara project. Some details of compressed-air plant to be used as an adjun 
Live Music Archive
Librivox Free Audio
Metropolitan Museum
Cleveland Museum of Art
Internet Arcade
Console Living Room
Books to Borrow
Open Library
TV News
Understanding 9/11